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M/s. India Japan Lighting Pvt. Ltd. Versus CCE & ST, LTU, Chennai

2016 (3) TMI 197 - CESTAT CHENNAI

Eligibility of CENVAT credit - credit of service tax paid on various services viz., Clearing and forwarding, repair contract, labour contract and professional charges etc., during the period August, 2010 to December, 2011 - whether the services do not qualify as input services as defined under Rule 2 (l) of, 2004 - demand along with interest and penalty - Held that:- Without the machineries the manufacturing activity cannot take place and for proper and efficient running of the machineries it is .....

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Mfg. Co. Ltd., Japan, for testing purpose. Only on obtaining the approval/satisfaction as to the quality, specifications etc. of the product, the lamps are manufactured by the appellant. The appellants cannot proceed to manufacture goods unless they get the approval from the JV located abroad. In anticipation of the correctness of the goods without carrying out the testing abroad, no manufacturer would waste his capital and produce the goods and store the same in his factory. The appellants have .....

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icating authority to re-examine the claim of the appellant - Decided in favour of assessee by way of remand - E/40646/2014 - Final Order No. 40299 / 2016 - Dated:- 8-2-2016 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER For the Petitioner : Ms. Minchoo Punnose, Adv. For the Respondent : Ms. Indira Sisupal, AC (AR) ORDER The appellant M/s. Indo Japan Private Ltd., are the manufacturers of automotive lighting equipment falling under the Tariff Heading 8512 2010 of Central Excise Tariff Act, 1985 and are .....

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o not qualify as input services as defined under Rule 2 (l) of, 2004 and why the same should not be demanded from them under Rule 14 of CENVAT CREDIT RULES, 2004 read with Section 11 A of CENTRAL EXCISE ACT, 1944, along with interest and penalty. The Dy. Commissioner while passing the OIO dated 11.01.2012, allowed the credit in respect of courier charges and labour contract service and partially allowed under the repair contract service and confirmed the demand for an amount of ₹ 1,19,737/ .....

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ommissioner (Appeals), the appellant assesse is in appeal before the Tribunal. 3. The LD. Counsel Ms. Minchoo Punnose, Advocate, appearing on behalf of the appellant assessee submits that the Ld. Commissioner (Appeals) did not consider the submissions made and the evidences on record before passing the impugned order and the same is liable to be set aside. She further submits that the expenses on repair and replacement services have been incurred for repair of the machineries within the factory .....

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sition has been clarified by the Board vide the Master Circular No. 96/3/2007 dated 23.08.2007. She submitted that accordingly the clearing and forwarding services used for exporting their final products is used in relation to their business activities and they have rightly availed the credit and the demand is liable to be set aside. She also referred to the findings recorded at para-8 of the Adjudicating Authority. In respect of clearing and forwarding service she relied on the decision of the .....

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esse failed to prove their claim. She further submitted that the eligibility to the credit is not under doubt provided it is proven by them, under which category they are claiming the credit. She reiterated the findings of the adjudicating authority and the Commissioner (Appeals) and also submitted that credit in respect of clearing and forwarding service claimed by the appellant assesse are not for export of goods. Only the samples were sent to the joint venture partners in Japan for testing pu .....

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n of input services as defined under Rule 2 (l) of the CENVAT CREDIT RULES, 2004. Hence, the credit availed on the professional charges have been rightly disallowed. 4.2 Regarding repair contract service, wherever there was direct nexus to the manufacture, credit was allowed and the balance credit of ₹ 4,687/- availed against the same service was not allowed as the documents failed to prove their claim. She drew my attention to pages 10 & 11 of the Order-In-Original and submitted the a .....

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them in respect of Repair and replacement Services for repair of the machineries within the factory. Without the machineries the manufacturing activity cannot take place and for proper and efficient running of the machineries it is necessary to repair the machineries whenever needed. Replacement of worn out parts also required for the machineries to run effectively. If it is factually proven that the services were used for repair of the machineries, without doubt, the appellants are eligible fo .....

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