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TMI Blog2016 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1994 along with interest and penalties. The challenge to order-in-appeal no. PUN-EXCUS-001-APP-139-14-15 dated 23rd December, 2014 of Commissioner of Central Excise (Appeals) Pune-I relates to denial of CENVAT credit for the period from October 2007 to June 2012, on discharge of tax on utilisation of services of other dealer for labour cost in servicing of vehicles sold by appellant. 2. It would appear that it is an industry practice to extend fixed number of free servicing along with purchase of car and to permit the customer to avail the same from any of the authorized dealer of the manufacturer. As it is incumbent on the selling dealer to provide the free service the practice involves payment being effected by selling dealer to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices used in relation to advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, (v) Services used in relation to activities relating to business and outward transportation upto the place of removal. Each limb of the definition of input service can be considered as an independent benefit or concession exemption. If an assessee can satisfy any one of the limbs of the above benefit, exemption or concession, then credit of the input service would be available. This would be so even if the assessee does not satisfy other limb/limbs of the above definition. To illustrate, input services used in relation to setting up, modernization, renovation or repairs of a factory will be allowed as cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... output service. In the course of discharge of this output service which includes free servicing, it is quite probable that the servicing may be delegated to another dealer. That it was performed elsewhere does not alter the factum of usage of another service-provider for supplying a service contracted to be provided to a recipient in which the recipient of service is not obliged to meet the costs. Such costs met by appellant are expenditure towards service procured to provide an output service. 7. In view of the decision of the Hon'ble High Court of Bombay in re of Coca Cola India Pvt. Ltd. (supra), the appellant is entitled to claim CENVAT credit of tax paid on invoices raised by co-dealers. The appeal is, therefore, allowed. (Operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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