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2016 (7) TMI 1198 - AT - Central ExciseDisallowance of credit on capital goods - Held that:- The appellant has explained that the hoses are used to connect / transport silicon carbide just like pipes. Air receivers serve the purpose of air compressors in the manufacture of final product. These goods are integral to the manufacturing process and would fall within the definition of capital goods/parts. In view thereof, hold that credit on Air receiver and corrugated hoses is admissible. Disallowance of credit on input services - The period involved is April 2006 to January 2011 - Held that:- The contention of the appellant counsel that the service of payroll processing and C Form collection service is connected to the activity of accounting is not without substance. The definition of input service, as contained in Rule 2(l) of CENVAT Credit Rules, 2004 speaks about services used in relation to activities relating to business such as accounting, auditing, financing etc. Payroll processing of employees is part of maintaining proper accounts. So also C Form has to be collected and submitted which is necessary for upkeep of tax accounting. As such, I hold that the credit on these input services is admissible.
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