Home
Forgot password New User/ Regiser
2023 (3) TMI 126 - AT - Central ExciseCENVAT Credit - after sale service provided during warranty period of the sale of the goods manufactured by the respondent - service provided during warranty period is after removal of the goods from the factory is provided in or in relation to the manufacture of excisable goods or not - HELD THAT:- The service on which the respondent have taken the cenvat credit is provided in the nature of Repair & Maintenance of the excisable goods i.e. pumps sold by the respondent during the warranty period. It is also observed that the policy of free servicing during warranty period is not under dispute. The respondent is not collecting the service charges from the customer which is the service during the warranty period is provided free of cost therefore, the cost of such service stand included in the transaction value of the excisable goods sold by the respondent. Rule 2(l) particularly in the inclusion clause covers the ‘activities relating to business’ therefore, the said service during warranty period also clearly falls under the category of ‘activities relating to business’. This identical issue has been considered by this tribunal in the case of Leroy Somer India Pvt. Ltd [2015 (10) TMI 1025 - CESTAT NEW DELHI] wherein, the tribunal has held that appellant is entitled to take Cenvat credit on repairs and maintenance provided by services provider during the period of warranty on behalf of the appellant. Thus, the respondent are entitle for the cenvat credit on the service of Repair & Maintenance during warranty period accordingly, the impugned order is upheld - Revenue’s appeal is dismissed.
|