TMI Blog2017 (6) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs - credit allowed. CENVAT credit - input services - tyre re-treading services - maintenance of vehicles - The essence of the ground is that heavy earthmoving vehicles such as dumpers are not considered as capital goods and hence the services incidental to their maintenance will not be eligible to take credit - Held that: - The definition of input service is inclusive and wide in nature and includes any service used in or in relation to the manufacture of final products. It is not in dispute that the subject services are used in relation to dumpers which are used in mines for producing coal on which excise duty has been paid - credit allowed. Security services - penalty - Held that: - the appellant has taken credit for the Securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... periods involved are March 2011 to March 2012 and April 2012 to June 2012. Cenvat credit have been disallowed amounting to ₹ 85,79,745/- during the period March 2011 to March 2012 and ₹ 36,16,580/- during the period April 2012 to June 2012. Aggrieved by the impugned order present appeal has been filed. 3. With the above background we have heard Shri Rajeev Agarwal, Advocate for the appellant and Shri M.R. Sharma, DR for the respondent. 4. Credit stands disallowed on lubricants / lubricating oils which have been used by the appellant for dumpers which have been used in mines. Dumpers are classifiable under chapter 87 and since these are not classifiable as capital goods, in the impugned order it has been held that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... personal use or consumption of any employee; and (F) any goods which have no relationship whatsoever with the manufacture of a final product. Explanation. For the purpose of this clause, free warranty means a warranty provided by the manufacturer, the value of which is included in the price of the final product and is not charged separately from the customer. 5. As can be seen from the above definition, it nowhere provides that any machinery in which input is used must be a capital goods as defined under rule 2 (a)(A) of the Cenvat credit rules. The only criteria for admissibility of Cenvat credit on input is that the same must be used in the factory by the manufacturer of the final product. There is no dispute that heavy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services,- (A) Specified in sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not considered as capital goods and hence the services incidental to their maintenance will not be eligible to take credit. The definition of input service is inclusive and wide in nature and includes any service used in or in relation to the manufacture of final products. It is not in dispute that the subject services are used in relation to dumpers which are used in mines for producing coal on which excise duty has been paid. Consequently, we find no reason to deny the credit on these input services. 9. Credit has also been sought to be denied on security services which admittedly have been availed at residential colonies. The appellant has admitted that they are not entitled to the credit on such services and have already reversed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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