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2017 (4) TMI 1021 - AT - Central ExciseCENVAT credit - MS items - appellant claims that these items are used in fabrication of capital goods - Department has denied the credit on such items observing that after fabrication the capital goods when attached to the earth become immovable property - Held that: - In the case of M/s Sanghvi Forging & Engineering Ltd. [2013 (11) TMI 743 - CESTAT AHMEDABAD], the Tribunal has held that although the credit is availed under the category of capital goods, the same cannot be denied under the category of inputs if the same is eligible - disallowance of credit on MS items is unjustified. CENVAT credit - various input services - rent-a-cab service - manpower service - House Keeping service - gardening services - accommodation services - erection & commissioning services - insurance services - PF reimbursement services - services received for construction of compound wall - Held that: - The services of Rent-A-Cab is availed by the appellant prior to 01.04.2011, except for an amount of ₹ 498/-. Therefore, the credit on the said services except for an amount of ₹ 498/- is allowed - The services for manpower is received for the purpose of railway track maintenance which was held to be admissible - House Keeping services were used for keeping the premises clean. Similarly, gardening services, accommodation services, erection & commissioning services, insurance services and PF reimbursement services were held to be eligible. Out of the total amount of ₹ 6,04,875/- in regard to services received for construction of compound wall, it is submitted by the appellant that ₹ 84,587/- pertains to the credit availed after 01.04.2011. In the case of M/s Nirma Ltd. Vs. CCE & ST, Vadodara-I [2013 (7) TMI 46 - CESTAT AHMEDABAD], the Tribunal discussed the eligibility for the period prior to 01.04.2011 and has held that credit on services relating to construction of compound wall is eligible - except for the amount of ₹ 84,587/- the credit in respect of the services relating to construction of compound wall is eligible for credit. Appeal allowed - decided partly in favor of appellant.
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