9911796707
TMI Blog2023 (12) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision of taxable output services. HELD THAT:- On perusal of the definition of input is contained in Rule 2(k) of the CENVAT Credit Rules, 2004, it would reveal that all goods used by any service provider, for providing any output service, should be eligible for consideration as input . In this case, the disputed goods namely LED lightings, fixtures and control panels were used by the appellants for provision of the taxable services to the service recipient i.e., the Municipality/Municipal Corporation. Since, those disputed goods in the form of inputs were used and utilized for provision of the output service and service tax liability on provision of such services were duly discharged by the appellants, it cannot be said that the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gy conservation measures, installation of feeder panels for automation along with metering operation, maintenance and repair service of the Street Lighting fixtures etc. The contracts entered into between the parties have stipulated that the contractor should be entitled for the consideration on the basis of energy saving earned by them i.e., Pay from Savings (ESCO) basis. The appellants herein have classified the said provision of service under the taxable category of Scientific and Technical Consultancy Services and Maintenance and Repair Service , defined under the Finance Act, 1994. The appellants availed Cenvat Credit of Central Excise duty paid on the inputs. During the course of verification of the records maintained by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stalled by them; and on expiry of the contract period, the right of ownership of the said goods were vested with the Municipalities/ Municipal Corporation, then in such case, the finished goods manufactured by the Appellants cannot be considered as raw material/inputs for provision of taxable service by them. On the basis of such observations, the learned adjudicating authority has held that the LED lightings, fixtures and control panels manufactured and cleared by the assessee-appellants from their manufacturing division, cannot be treated as inputs at their own Service Division and the Cenvat Credit of Central Excise duty paid at the time of clearance of these goods shall not be admissible to them as cenvat credit. Feeling aggrieved with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nicipalities/Municipality Corporations located within the state of Gujarat and Orissa. 7. The issue involved in these appeals for consideration by the Tribunal is whether, the disputed goods should be considered as inputs for the purpose of availment of Cenvat Credit in respect of the Central Excise duty paid by the appellants. The definition of input is contained in Rule 2(k) of the CENVAT Credit Rules, 2004. The relevant definition is extracted herein below for is on reference. Rule 2(k) input means (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... establishment of ownership of the goods, which are used for the provision of the output service, in our considered view, the impugned orders passed by the learned adjudicating authority cannot be sustained on such grounds. In other words, usage of inputs is only confined to the factory in case of a manufacturer and premises in case of service provider. 8. Therefore, we do not find any merits in the impugned order, insofar as the adjudged demands were confirmed on the appellants, holding that the disputed goods shall not be considered as inputs for the purpose of the provision of the taxable output service. Accordingly, by setting aside the impugned orders, the appeals are allowed in favour of the appellants, with consequential benefits, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
