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2018 (11) TMI 68 - CESTAT HYDERABADCENVAT Credit - input services rendered by the service providers while setting up of their plant - labour charges which were for fixing and erection of equipments, buffing work, fixation and erection of equipment work, insulation work etc. for the activity undertaken by the service providers in the factory premises. Held that:- The services which were rendered by the service providers were in respect of capital goods and not for laying of foundation or making structures for support of capital goods. Further, it has to be recorded in the findings of the first appellate authority that these services were not used coextensively for manufacture of final products, also seems to be not correct from the factual position as the appellant herein being the manufacturer of bulk drugs, requires installation of various plant and machinery which would contribute towards manufacture of final products. In the case in hand, it cannot be said that the services rendered by service providers on various activities as enumerated in Annexure-B to the show cause notice were in respect of equipments which are not used for manufacturing of final products. If that be so, the law is now clearly settled as to what would be “directly or indirectly or in relation to manufacture as the foundation or making structures for support are in respect of the capital goods. Credit allowed - appeal allowed - decided in favor of appellant.
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