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2015 (12) TMI 489 - AT - Service TaxCENVAT Credit on capital goods received much before registration - whether the respondent was correct in availing the cenvat credit of the capital goods which was procured by them during the year 2005-06 and installed in their hotel which started functioning from 21 May, 2009 - Held that:- Respondent has registered themselves with the authority as recipient for services and also provider of services. The capital goods which were purchased by the respondent were installed in the hotel premises and were undoubtedly used for providing output services. On such a background, the first appellate authority has set aside order-in-original which denied the Cenvat Credit of the Central Excise duty paid on all the capital goods which procured by the appellant in the period of 2005-06 to 2008-09. As against such detailed finding, given by the first appellate authority, the revenue ground of appeal is not controverting the findings by any evidence which can be considered for coming with conclusion other than what first appellate authority has arrived at that the cenvat credit on the capital goods is allowable, which were received even when the respondent was not registered as service provider. It is common knowledge that the capital goods are received for installation during the construction activity and the service tax liability arises when the hotel starts functioning. - Decided against Revenue.
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