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2022 (4) TMI 422 - AT - Central ExciseCENVAT Credit - Input Services - services of electricity expenses in connection with their head office is admissible to the factory or otherwise? - service in connection with overall business activity of the manufacturing unit or not - HELD THAT:- The appellant factory is the sole factory for which the head office is located outside the factory. The head office is involved in the activity related to the factory’s manufacturing and sale of the goods. The Head office is not operating for any other activity other than the activity relating to the factory operations, therefore, merely because the head office is located outside the factory, it cannot be said that the service received and used in head office does not relate to the manufacturing activity. Had this same office is maintained in the factory premises, there would not have any objection by the Revenue. The location of the head office is immaterial so long it is used only for the operation of the factory’s activities, therefore, any service received in head office is in relation to the manufacturing activity of the appellant. This specific issue has been considered by this Tribunal in various judgements - reliance can be placed in the case of M/S. HID INDIA PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX BANGALORE [2016 (11) TMI 99 - CESTAT BANGALORE], where on similar issue, credit was allowed. Thus, even though the input service was received by the head office but since it is in connection with overall business activity of the manufacturing unit, the credit is admissible - appeal allowed - decided in favor of appellant.
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