Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 851 - AT - Central ExciseDenial of CENVAT Credit - Revenue contends that appellant’s unit is not eligible for Cenvat credit in respect of paints, as the same is not an input for manufacture of parts of towers - Held that:- appellant’s head office is registered as provider of taxable service and they are paying service tax on the charges for erection and installation of towers which also involving painting of the same. Hence, paint received by them can be treated as inputs for providing taxable service, and the appellant would be eligible for Cenvat credit in respect of the same which could be utilized for payment of service tax. Thus, even if cenvat credit in respect of paint is denied to the appellant’s manufacturing unit, the same would be available to the head office registered as service provider for payment of service tax as erection and installation service. Prima facie, we also find substance in the plea of the appellant that the duty on parts of tower had been paid on the value which included the value of paints. In view of this, we are of the view that the appellant have a strong prima facie case in their favour and hence requirement of pre-deposit of demand of Cenvat credit demand and interest thereon and penalty is waived for hearing of the appeal and recovery thereof is stayed till disposal of the appeal - Stay granted.
|