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2009 (9) TMI 417 - CESTAT, NEW DELHICenvat Credit- the appellant entered into a contract with M/s. Hindustan Zinc Ltd. for the operation and maintenance of Chanderiya Captive Power Plant at Chittorgarh, Rajasthan. The appellant is also registered with Service Tax Department under the category of repair and maintenance. The findings of the Commissioner (Appeals) is that the appellant wrongly availed input-service credit on unloading charges, which is not for the maintenance and it is used for the operation purposes. The Commissioner (Appeals) also allowed input-service credit on car hiring charges, insurance charges, storage charges to the extent of shape of maintenance fee i.e., 49.60 per cent as per the contract. The Commissioner (Appeals) observed that the contract is for operational and maintenance and, therefore, the appellant is eligible for input-credit only in respect of maintenance and not for the operational purposes. Held that- is one composite service, the Department cannot split it into plant operation and plant maintenance for the purpose of permitting Cenvat credit and deny Cenvat credit in respect of input goods and services used for plant operation. In view of this, I hold the impugned order is not sustainable. The same is set aside. The appeals are allowed.”
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