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2015 (1) TMI 181 - AT - Service TaxWaiver of pre deposit - Warranty service - CENVAT Credit - Nexus with manufacturing activity - Held that:- As per the terms of relevant contract, the assessee was under obligation to repair and maintain the transformers manufactured and cleared by M/s. Danke Products and, hence, they were entitled to Cenvat credit on the said service rendered during the warranty period. It is also not out of place to mention that the warranty service was undisputedly one attached to the very sale/clearance of the equipments by the appellant. It can, therefore, be reasonably argued that the warranty services, though provided after the clearance of the goods from the factory, had a certain nexus with the sale/clearance of the goods itself. It is, therefore, arguable that the provision of warranty services by M/s. Videocon Industries Ltd. to the customers of the appellant in terms of the contract of sale between the appellant and their customers can be considered to be covered by the definition of ‘input service’ - Prima facie case in favour of assessee - Stay granted.
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