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2018 (12) TMI 929 - AT - Central ExciseCENVAT Credit - input services - services received by appellant from their authorized service stations with regard to free after sale services and repairs etc. of warranty period - Held that:- The matter is no longer res-integra as this Tribunal in the case of Carrier Airconditioning & Refrigeration Ltd. vs. CCE, Gurgaon [2016 (3) TMI 124 - CESTAT NEW DELHI] has already held that services provided by the authorized representative/ service stations are on behalf of the manufacturer and the service tax paid on availment of such services by the manufacturer, they are entitled for Cenvat credit of such input services. Thus, since the value of free after sale services and the warranty period repairs and maintenance are already included in the assessable value of the two wheelers, the service tax paid on availment of such input services by the manufacturer from their authorized representatives the appellant/assessee is entitled for credit of such input services. CENVAT Credit - input services - service tax paid on the commission for procuring the advertisement services - Held that:- The activity of hiring of print media agent for ultimate purpose of advertising is very much part of advertising service and since the advertisement charges forms the part of assessable value of the appellants finished product any cost incurred and services availed in this regard form the part of assessable value and thus the appellant is entitled for credit of such input services - the appellant are legally entitled to avail input service credit of the service tax paid by them on the commission charged by the print media agent for advertising their advertisement material into various newspapers. CENVAT Credit - input services - renting of infrastructural facilities from M/s Honda Siel Car Pvt. Ltd. - Held that:- Common facilities availed by the appellant on rent basis are in „relation to the manufacture of goods‟ and then on integral part of overall activity of manufacturing - also since the charges of rent/license fee paid by the appellant must have been included in the cost of the finished product manufactured by the appellant as per the provisions of Cenvat Credit Rules they are entitled for credit of service tax paid by them as the facilities were in relation to manufacturing of their finished product - the appellant has rightly availed Cenvat credit of service tax paid on rent of infrastructural facilities. Extended period of limitation - Held that:- Since all the material facts have always been available with the Department and the appellant have been audited by the Department on the regular intervals during the period of demand, the necessary element for invoking the extended time period of 5 years for demanding reversal of the Cenvat credit are not available in the present case - demand is barred by period of limitation. The penalties imposed under Rule 26 of the Cenvat Credit Rules on the appellants who are paid employees of the main appellant is not warranted. Appeal allowed - decided in favor of appellant.
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