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2016 (8) TMI 985 - CESTAT NEW DELHICenvat credit - testing, Handling & Commission, Telephone, Machine maintenance, Insurance relating to depot, Courier, Mobile van, Tax, Hotel rent, Air Travel, Catering, Banking (distributed by ISD) Services used at the depot/C&F agent premises and in relation to the manufacturing activity of the appellant - Held that:- credit has been taken as distributed by the ISD and pertains to various activities intimately connected with the manufacture and sale of cement through depots, C&F agents etc. Such services have been allowed as input services and are squarely covered by several decisions. Credit on insurance services has been sought to be disallowed on service tax paid for insuring the plant and machinery, mining equipments, store material and company vehicles. The credit cannot be denied on the ground that these services are not used in or in relation to the manufacture of cement since insuring the plant and machinery, building etc. would form part of the normal business activity to make sure that they get compensation in the unfortunate event of fire, theft etc. These services have also been held to be permissible as input services in the various cases. Cenvat credit - R&D Services - incurred towards development of re-active belaite cement which is not the product of the appellant - Held that:- this has been shown to be an R&D activity undertaken by the respondent in pursuance of introduction of new varieties of their final product and hence cannot be denied. Similar issue has been examined by the Tribunal in the case of Cadile Healthcare vs. CCE, Ahmedabad [2009 (8) TMI 172 - CESTAT, AHMEDABAD] where technical testing and analyses services were sought to be denied in respect of medicine which never reached the market. However, it was held that the service will be allowable on the ground that all products taken up by the company for R&D may not reach the customer as a commercial product. We see no reason to take a different view in respect of R&D services of the respondent. - Decided against the Revenue
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