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2018 (7) TMI 1216 - AT - Service TaxCENVAT Credit - input service - “success fee” payable against the sale of Certified Emission Reduction - whether the appellants are entitled to service tax credit on "Consultancy Engineering Services" in relation to sale of Certified Emission Reduction? - Held that:- When a particular service not mentioned in the definition clause is utilized by the assesse /manufacturer and service tax paid on such service is claimed as Cenvat credit, the question is what are the ingredients that are to be satisfied for availing such credit. If the credit is availed by the manufacturer, then the said service should have been utilized by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities relating to business. If any one of these two tests is satisfied, then such a service falls within the definition of “input service” and the manufacturer is eligible to avail Cenvat credit of the service tax paid on such service.” An identical issue was considered by the Tribunal in the case of Heidelberg Cement India Ltd. Vs. Commr. of Central Excise, Bangalore [2016 (9) TMI 677 - CESTAT BANGALORE], wherein the consultancy services used for greenhouse gas emission reduction and Carbon Credit Management Services were held to be cenvatable. Appeal allowed - decided in favor of appellant.
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