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2023 (11) TMI 146 - AT - Central ExciseAdmissibility of Cenvat Credit Rules paid on service tax under reverse charge mechanism - service fees paid to the principals namely Honda Motor Company Ltd., Japan for development of Part Manual and Service Manual - HELD THAT:- Part catalogue is the document created for codification of all the parts for proper understanding and management of inventory. This codification is used not only for inventory management but also for placing the orders on the suppliers and receiving the orders from the dealers/customers. Even the storage bins are to be identified as per these part catalogue. Orders are placed by referring to the part as codified in this manual and is essential uniform understanding of the part by all in the chain. Without this manual all the operations of the appellant will be haphazard. So, this part catalogue is essentially the part inventory management, procurement and supply system of the parts to the dealers and through them to the ultimate customers - there are no merits in the submissions or the observations made by the lower authority contrary to this. It is quite evident that the maintenance repairs and construction manual, is like an idiot guide to the dealers for undertaking the work of repairs and maintenance of the vehicles ensuring compliance with the high safety standards set by Honda Motors, by use of the genuine parts supplied by the appellant. It provides how to further maintain and repair the vehicles brought to the dealers by their customers. Such standardization is absolutely essential to ensure that standard set by the manufacturer are achieved irrespective of the person or the dealer servicing the vehicle - This standardization will promote the sale of genuine parts which are supplied or sold by the appellants. Thus this manual is essential to the activities undertaken by the appellant through supply of genuine spare parts. Thus, denial of CENVAT credit in respect of services of development of “Part Catalogue” and “Maintenance, Repair and Construction Manual” cannot be upheld. As no demand survives the demand for interest and penalties imposed also are set aside. There are no merits in the impugned order and the same is accordingly set aside - appeal allowed.
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