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TMI Blog2019 (9) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was not eligible. Show-cause notice was issued alleging that the credit is not eligible as input services since they do not have nexus with the manufacturing activity. After due process of law, the original authority allowed credit on certain services but denied credit on Warranty Services to the tune of Rs. 1,25,982/- and confirmed this demand along with interest and imposed penalty of Rs. 12,598/-. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, the learned consultant Shri N. Rangasamy appeared and argued the matter. He submitted that the appellants are under obligation to provide Warranty Service to the customers, which is imparted through dealers. The dealers do Repair Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sofar as they relate to motor vehicles, which are not capital goods is excluded. 4. Heard both sides. 5. The issue is with regard to denial of credit of input services on warranty claims. The appellant is a manufacturer of motor vehicle parts and accessories. They supplied parts and accessories to original manufacturers of vehicles M/s. Maruti Udyog Ltd., M/s. Tata Motors etc. The vehicle manufacturers have an obligation to fulfill the warranty claims of the vehicles sold by them. Whenever a customer puts forward claim during the warranty period, the dealers/manufacturers fulfills such claim and does the repair and maintenance and servicing of the vehicles. The parts, which are required to be replaced, are procured from the appellant he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t think that the said decision is applicable to the facts of this case. The input services in the nature of repair and maintenance are in connection with supply of parts during the warranty period. These are not services which are connected with outward transportation of goods. All input services listed in the definition under Rule 2 (l) of Cenvat Credit Rules are not restricted to be availed within the factory itself. It is not necessary that all input services should be availed within the factory itself. The restriction in respect of inputs does not apply to input services. The Hon'ble High Court in the case of M/s. Deepak Fertilizers & Petro-Chemicals Corporation Ltd., reported in 2013 (32) S.T.R. 532 (Bom.) has held that it is not neces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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