The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the sale of the carburetors that fall under the category of input of service are eligible to avail of CENVAT Credit of Excise duty.
Keihin Fie Private Limited, the appellant assessee was an Indo-Japanese venture engaged in the business of manufacture and sale of carburetors and other goods, classifiable under Chapters 84 and 87 of the Central Excise Tariff Act, 1986.
The assessee appealed against the order passed by the Commissioner (Appeals) for denying the CENVAT credit on Input Services which was availed by the assessee.
Shrenik R. Gandhi, the counsel for the assessee contended that before 01.04.2011, the definition of “Input Service” allows the CENVAT credit on construction-related services and this had been held to be Input Service defined in the case of Rico Auto Industries Limited Vs CCE.
Also submitted that the services rendered by the assessee fall very much in the definition of “Input Service” as both the services are required for business purposes and not for any personal use.
Shivani, the counsel for the department relied on the decisions made by the lower authorities and contended that the CENVAT credit had been wrongly availed by the assessee in respect of Commercial Construction Services.
The Bench observed that the Construction Services which was availed by the assessee before December 2008 for modifying the facilities related to production are covered in the definition of “Input Service” as provided under Rule 2(l) of the CENVAT Credit Rules, 2004.
A single-member bench comprising S.S Garg (Judicial) quashed the denial of CENVAT credit of excise duty which was filed by the assessee.
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