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2015 (9) TMI 261 - AT - Service TaxBenefit of CENVAT Credit of inputs and input services - Various services - Held that:- All the services are utilized by appellant in the factory premises and some are indicating the activities relating to the business like sales and marketing. On deeper perusal of the details put-forth by appellant before the adjudicating authority, services are used in or in relation to the manufacture of final products i.e. tractors which are clared on payment of appropriate Central Excise duty, whenever applicable. Service tax paid by the service provider are on the hiring charges on forklift, which were hired out to appellant for movement of materials within the factory premises. Accordingly, we hold that these services as also all other services as enumerated in paragraph 2 herein above are eligible to be availed as input service credit. Since the correct amount is not ascertainable from the show cause notice, we direct the adjudicating authority to workout the exact figure involved in the service of life insurance cover attributable to the family of the employees and direct appellant herein to discharge the said service tax liability along with interest. Though we have upheld this demand, we find that there could be a bonafide impression on the part of the appellant such CENVAT credit is eligible to be availed hence no penalty is required to be imposed, as we set aside major portion of demand, question of imposition of penalties on appellant would not arise. - Decided partly in favour of assessee.
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