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2016 (3) TMI 197 - AT - Central ExciseEligibility of CENVAT credit - credit of service tax paid on various services viz., Clearing and forwarding, repair contract, labour contract and professional charges etc., during the period August, 2010 to December, 2011 - whether the services do not qualify as input services as defined under Rule 2 (l) of, 2004 - demand along with interest and penalty - Held that:- Without the machineries the manufacturing activity cannot take place and for proper and efficient running of the machineries it is necessary to repair the machineries whenever needed. Replacement of worn out parts also required for the machineries to run effectively. If it is factually proven that the services were used for repair of the machineries, without doubt, the appellants are eligible for credit. The matter is remitted to the original authority on the above terms. With regard to Clearing and Forwarding service, the contention of the appellant is that, they send the manufactured lamps to their JV partner M/s. Koito Mfg. Co. Ltd., Japan, for testing purpose. Only on obtaining the approval/satisfaction as to the quality, specifications etc. of the product, the lamps are manufactured by the appellant. The appellants cannot proceed to manufacture goods unless they get the approval from the JV located abroad. In anticipation of the correctness of the goods without carrying out the testing abroad, no manufacturer would waste his capital and produce the goods and store the same in his factory. The appellants have stated this with evidences which according to the Ld.AR were not furnished to the lower authorities. This being the circumstance, the original authority is directed to verify the documents and pass appropriate orders on merits. With regard to Professional charges service, that the subject service has been incurred for engaging the services of specialists, technocrats and other professional agencies which is in relation to the business activity of the appellants - fit case to remand to the adjudicating authority to re-examine the claim of the appellant - Decided in favour of assessee by way of remand
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