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2019 (3) TMI 1365 - AT - Central ExciseCENVAT Credit - input services - capital goods - Repair and Maintenance Charges of air conditioners installed in the factory premises - Held that:- The learned counsel adverted to the definition of ‘input services’ and submitted that the inclusive part of the definition specifically mentions the service of repair and maintenance. Indeed, the said services do not restrict itself to repair and maintenance of capital goods alone. For this reason, the disallowance of credit alleging that the air conditioners installed in office are not capital goods is incorrect - credit availed on such ‘input services’ is eligible for credit. Service tax paid on common facility charges - denial on account of nexus - Held that:- The credit availed on Renting of premises has been allowed by Commissioner (Appeals). When the premises is taken on rent, the appellants have to pay maintenance charges, for the common facility also - the disallowance of credit on such maintenance charges paid for common facility is incorrect - credit allowed. Charges paid by the appellants for taking Xerox copies - Held that:- The charges paid by the appellants for taking Xerox copies is explained to have incurred by them for taking copies of documents in the Head Office of the appellants. Such necessity for taking photocopy of documents is related to the activity of manufacture and appellants are eligible for credit - credit allowed. Appellants have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting - Held that:- The appellants have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting. These services are intended to improve the quality of their finished product - the credit on such services is eligible - credit allowed. Membership Fees has been paid by the appellants to take membership specifically in M/s. Indian Sugar Mills Association and M/s. South Indian Sugar Mills Association - Held that:- Such association helps its members to understand the trends in the market and allows a common platform to raise their grievances before the concerned authorities. The credit availed on such services is eligible - credit allowed. AMC for maintenance of attendance machines - Held that:- The AMC for maintenance of attendance machines is indeed directly related to the manufacturing activity. Such machines are used to monitor attendance of employees and also to monitor their presence within the factory. The credit availed on such charges is eligible - credit allowed. CENVAT Credit - capital goods - Roofing sheets, GI Pipes, Welding Electrodes and RM White Metal etc. - Held that:- The Larger Bench of the Tribunal in the case of M/s. Modi Rubber Ltd., [2000 (5) TMI 64 - CEGAT, NEW DELHI] has held that when the goods fall either in “capital goods” or ‘inputs’, the credit ought to have been allowed - In the present case, the department cannot disagree that these items fall within the definition of ‘inputs’. After 01.04.2011, the definition of ‘inputs’ is so wide to include almost all goods that are brought into the factory - credit allowed. The disallowance of credit on various input services and items which are availed under the category of “capital goods’ is unjustified - appeal allowed - decided in favor of appellant.
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