Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1155 - AT - Service TaxDenial of CENVAT credit - provider of output service - utilisation of services of other dealer for labour cost in servicing of vehicles sold by appellant - Rule 2(1) of CENVAT Credit Rules, 2004 - Held that: - there can be no doubt that appellant renders authorized service station service and business auxiliary service on behalf of M/s Maruti Udyog Ltd. It is therefore, a provider of output service. In the course of discharge of this output service which includes free servicing, it is quite probable that the servicing may be delegated to another dealer. That it was performed elsewhere does not alter the factum of usage of another service-provider for supplying a service contracted to be provided to a recipient in which the recipient of service is not obliged to meet the costs. Such costs met by appellant are expenditure towards service procured to provide an output service - the decision in the case of Coca Cola India Pvt Ltd v. Commissioner of Central Excise, Pune-III [2009 (8) TMI 50 - BOMBAY HIGH COURT] relied upon where it was held that the appellant is entitled to claim CENVAT credit of tax paid on invoices raised by co-dealers - credit allowed - appeal allowed - decided in favor of appellant.
|