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2014 (5) TMI 687 - AT - Service TaxCENVAT Credit - input services - authorized service station - GTA service, advertisement services, Insurance services, audit fee, Valuation charges, repair and maintenance, AC machine repairing, Courier service etc. - Held that:- The respondents are authorized dealer of M/s. FIAT India Pvt. Ltd. engaged in sale of cars and car parts and besides this, they are an authorized service station for servicing of motor vehicles, which is a taxable service. The services, in question, received by the respondent cannot be said to be exclusively used in or in relation to providing the output service, while they would be eligible for Cenvat credit only in respect of those services which are in or in relation to providing their output services of authorized service station. They would not be eligible for Cenvat credit in respect of the value of the services which have been received in connection with their trading activity. We find that this aspect has not been discussed in the impugned order. The impugned order is, therefore, set aside and the matter is remanded to the original adjudicating authority for fresh adjudication after verification as to what extent, the services, in question, have been used in or in relation to the providing of output services of authorized service station by the respondent and Cenvat credit would be available only to that extent. However, as regards the Commissioner (Appeals)’s order setting aside the penalty on the respondent under Section 76, since this is dispute regarding availment of Cenvat credit, penalty under Section 76 has called for, and the same has been correctly set aside. The Commissioner of Central Excise (Appeals)’s order setting aside the penalty under Section 76 is upheld. - Decided partly in favour of assessee.
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