TMI Blog2012 (8) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... id not produce the Chartered Accountant's certificate before the adjudicating authority - ST/43/09 & E/1742/10-Mum - A/388 & 389/2012/CSTB/C.I - Dated:- 2-5-2012 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellant: Shri S D Dewalvar, Addl. Commr. (AR) For Respondent: Shri Bharat Raichandani, Adv. Per: Ashok Jindal: Heard both sides. 2. Brief facts of the case are as under. 2.1 Appeal No. ST/43/2009 has been filed by the Revenue against the order passed by the adjudicating authority holding that the assessee is entitled to take input service credit on after sales service provided by the dealer subject to the conditions that the service charges are included in the assessable value of the vehicle. 2.2 Appeal No.E/174 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CCE 2009 (16) STR 576 (Tri. Ahmd.) , this issue came up before this Tribunal. This Tribunal has held that the assessees eligible for after sales service charges during the warranty period if any expenses have been incurred by the dealers for the same, assessee is entitled for input service credit. Therefore, he prayed that the order passed by the CCE, Nasik is correct and the order passed by the CCE, Mumbai V is liable to be set aside. 4. Shri S.Dewalvar, Addl. Commissioner (A.R.) strongly opposed the contention of the learned Advocate and submitted that the input service credit taken by the assessee on after sales service, in fact, is not an input service'. The learned A.R. further submitted that this is not a sale promotion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction value means the price actually paid or which are payable for the goods when sold and those includes servicing and warranty also. Admittedly the service and warranty is post manufacturing expenses which are to be provided to the customer after sale. As per the provision of Section 4(3) (d) the value of warranty and servicing which is a post manufacturing are includable in the assessable value and therefore, these expenses incurred in the service are entitled for input service credit. 5.2 We do not find any force in the arguments of the learned A.R. that the expenses incurred after sales service is not an input service'. The said issue came up before this Tribunal in the case of CCE vs. Danke Products (supra) wherein the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts charges towards servicing, warranty etc are includible in the transaction value. In this case also, the services provided by the repairer i.e. M/s. Danke Electiicals by way of repair/ maintenance in respect of transformers sold (by the three appellants) to GEB and falling within the warranty period were provided by M/s. Danke Electricals at the instance of the manufacturers and not on their own or at the instance of GEB. The payments for the said services were made by the Appellants including the service tax involved thereon. The aspect that the impugned transformers for repair/service were directly received from the customer (GEB) by the party and returned back to GEB without routing through the Appellants is not relevant for determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s already stands included in the assessable value of the transformer in terms of Section 4 of CEA, 1944. The respondents could have provided such services on their own and paid the service tax and availed the credit of the same in which case, there would not have been any dispute. Instead of providing the repair and maintenance service themselves, they engaged DEL to do the same. As rightly concluded by the Commissioner (Appeals) such services were, in fact, being provided by DEL to the respondents and not to GEB. The fact that the same was in respect of the transformers already sold to GEB, would not change the situation inasmuch as the repair and maintenance of the same was a legal obligation of the respondents. As such, I find no reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BB Ltd. as reported in 2009 (15)STR23 (Tribunal-LB) = 2009 (92) RLT 665 (CESTAT-LB), and it has been held that expression activities relating to business are of wide import and would take into its ambit all types of activities. Admittedly, the repair and maintenance of transformers, being an activity relating to the sale of goods, and hence can be said to be relevant to the business, it stand rightly concluded by Commissioner (Appeals) that service of repair and maintenance of transformers during warranty period is a service covered by definition of input service and the assessees are entitled to take Cenvat Credit of service tax paid on such services. I find no reason to take a different view. 6. In view of these observations, we hold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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