TMI Blog2009 (7) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... key Electricals Ltd. (DEL) The bill for repairing and maintenance was being raised by DEL on the present respondents. The service tax paid by DEL was being availed as Cenvat Credit by the respondents. – held that - 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 - 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 - E/1371-1373/2008 - A/1532-1537/2009-WZB/AHD - Dated:- 21-7-2009 - Ms. Archana Wadhwa, Member (J) Shri Rajendra A. Lalchandani, Sr.Manager (Excise), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airs/maintenance became necessary within the warranty period. It is an established trade practice that during the warranty period, the manufacturer is obliged to provide the repair and maintenance of machinery, equipments etc. It is also well settled that the cost of repairs and services during warranty period are a part of the assessable value of the final products and Central Excise duty is paid on the said charges/cost. Further, as per the definition of "transaction value" under Section 4 of the Central Excise Act, 1944 amounts 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 Electricals by way of repair/ maintenance in respect of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to the Appellants. For the reasons as aforesaid, I find that the impugned services - Maintenance and Repair Services - were actually provided by M/s. Danke Electricals to the appellants and not to M/s. GEB even though the transformers during warranty period may have been received from M/s. GEB and returned to them without routing through the manufacturer." 5. As observed by Commissioner (Appeals), the respondents were under a legal obligation to provide repair arid maintenance service to GEB. The value of such services already stands included in the assessable value of the transformer in terms of Section 4 of CEA, 1944. The respondents could have pro vided such services on their own and paid the service tax and availed the credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen also the said services - Business Auxiliary Service - would be covered with the definition of input service for the appellants." 7. Apart from the above, he has also taken note of the definition of the 'input service' as appearing under Rule 2(1) of Cenvat Credit Rules, 2004 and has held that the it is wide enough to take into its ambit the above kind of service being provided by the respondents to GEB. I note that the definition of 'input service' stand examined by Larger Bench of the Tribunal in case of M/s. ABB Ltd. as reported in 2009 (15) S.T.R. 23 (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 acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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