TMI Blog2022 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... epair and maintenance services received. Further, the Court Below have erred in allowing part of such services and have disallowed the part of amount for no ostensible reasons - the amount disallowed is bad and the ground is allowed in favour of the appellant. Demand of 6% on clearance of waste and scrap - Rule 6 of CCR - HELD THAT:- The provisions of Rule 6 is attracted, only where the manufacturer clears both manufactured dutiable and exempted goods. Admittedly, the scrap cleared by the appellant are not manufactured scrap or scrap arising in the course of manufacture of final products or bye-products - the provisions of Rule 6 are not attracted in the facts and circumstances - this ground is also allowed in favour of the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot leased by AKVN. The Court below has relied on the precedent order of this Tribunal in the case of Mahle Engine Components India Pvt. Ltd. Vs. Commissioner, CGST, CE ST, Indore (Final Order No.50046/2019 CESTAT-New Delhi), wherein under the similar facts and circumstances, the maintenance charges were paid to AKVN, who have leased plot to Mahle Engine. 4. The Commissioner (Appeals) taking notice that as per the definition of input service credit is available to the manufacturer, of those services, which are used directly or indirectly in or in relation to the manufacture of final products and clearance of final products upto the place of removal. He further observed that the maintenance charges are part of the lease/rent charges. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, it is essential on the part of the appellant to have clarified the nature of the services and location/factory where such services were availed by them. In the absence of clarity, the cenvat credit for maintenance and repair, other than in respect of services from AKVN was held not admissible. 6. Ld. Counsel assailing the confirmation of demand urges that the Commissioner (Appeals) has erred in his findings treating that services in dispute, have to be used by the appellant unit only. He further relies on the definition of input service . He states that once service and inputs are used in the factory of production, the credit on the same is available. As the benefit of maintenance service is indirectly available to the manufacturer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. Explanation 1: For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of Rule 2 shall include non-excisable goods cleared for a consideration from the factory. Explanation 2. Value of non-excisable goods for the purposes of this Rule, shall be the invoice value and where such invoice value is not available, such value shall be determined by using reasonable means consistent with the principles of valuation contained in the Excise Act, and the rules made thereunder. 9. Ld. Counsel for the appellant has urged that fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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