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2014 (5) TMI 213 - AT - Service TaxCENVAT Credit - erection, installation & commissioning, repair & maintenance and insurance - production of fly ash - Held that:- There is no dispute that the services, in question, had been availed in respect of a plant for extraction and handling of fly ash at the premises of M/s. NTPC. The fly ash arises in the course of burning of coal for generation of electricity and as such, it cannot be said that the appellant had produced or manufactured the fly ash. Prima facie, the plant set-up by the appellant at the premises of M/s. NTPC appears to be for extraction & handling of the fly ash. Since fly ash is one of the raw materials used for manufacture of cement, I am of the view that the services availed for fabrication, erection & installation & repair and maintenance and insurance in respect of fly ash plant at the premises of NTPC, have to be treated as the services availed for procurement of inputs. The Department’s case is based on the allegation that the appellant have manufactured fly ash, an exempted final product, which prima facie does not appear to be correct. In view of this, the requirement of pre-deposit of Cenvat credit demand, interest and penalty is waived for hearing of the appeal and recovery thereof is stayed till the disposal of the appeal - Stay granted.
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