Repair and Maintenance Service- whether the Cenvat credit can be availed on input and input services.

PJ/Case Laws/2012-13/1154

Case: GEMINI ENGI-FAB LTD. V/S COMMISSIONER OF CENTRAL EXCISE, VAPI

Citation: 2012(280) E.L.T. 243 (Tri.-Ahmd.)

Issue:-Repair and Maintenance Service- whether the Cenvat credit can be availed on input and input services.

Brief Facts:-These two Stay Petitions are filed for waiver of pre-deposit of Service Tax of Rs. 9,95,150/- with interest and penalty imposed under Section 76 of Finance Act, 1994. Since the issue involved in these appeals/Stay Petitions is inter-related and hence they are being disposed by a common order.
The demand has been raised on the appellant for denial of CENVAT Credit of duty paid on the products which were sent to job workers for job working by the appellant, but the job workers discharged Central Excise duty liability on such products under presumption that he is supposed to discharge Central Excise duty liability. The appellant herein availed CENVAT Credit of such Central Excise duty paid on the goods and utilized the goods for rendering the output services of 'Repair & Maintenance' and utilized said credit for discharge of Service Tax liability.
Respondent’s Contention: - The respondents contended that availment of CENVAT Credit and utilization thereof is incorrect and hence they have demanded and confirmed reversal of CENVAT Credit as well as amount of duty paid by appellant by utilization of supposedly ineligible CENVAT Credit.

Reasoning of Judgment: - The Hon’ble Tribunal held that it is not in dispute that the appellant is providing Repair & Maintenance service. For providing such service input or input services which go into provision of such output service, if any tax or duty is paid on such input services or inputs, the appellants are eligible to avail CENVAT Credit. As has already been stated earlier, there is no dispute on this issue. Prima facie, he find that the appellant has made out a case for waiver of pre-deposit amounts involved. Hence, the Stay Petitions for waiver of pre-deposit of amounts involved are allowed and recovery thereof is stayed till the disposal of appeals.
Decision: - The appeal was allowed

Comments

PJ/Case Laws/2012-13/1154

Post a Comment

Query