Del. HC: Reopening Assessment on Basis of Estimation Report by DVO isn’t Sustainable  ||  Bom. HC: Validity Granted to the Caste Certificate Cannot Be Challenged In Election Petition  ||  Ker. HC: Foreign Travellers Overstaying After Expiry of Docs. Can’t be Treated as Infiltrators  ||  Del HC: Ashish Agarwal Case Intended to Resolve Conflicting Views Expressed by Different High Courts  ||  Kar. HC: Daughter-In-Law Not Part of ‘Family’ Defined to Include Specific Relatives of Employee  ||  Kerala High Court: Tourist Vehicle Cannot Run its Service Like a Stage Carriage  ||  MP HC: While Calculating Maintena. Amount, Loan Taken by Spouse Post Separation Can’t be Considered  ||  Del. HC: Jurisp. for Grant of Bail is that Person Can’t Be Deprived of His Right of Personal Liberty  ||  Del. HC: For Resolving Complex Disputed Factual Issues, Contempt Proceedings are Inappropriate  ||  Del. HC: Maintenance Under DV Act Not Tethered on Inability of Wife/ Victim to Maintain Herself    

C.C.E. & S.T.-Rajkot Vs. Falcon Pumps Private Limited - (Customs, Excise and Service Tax Appellate Tribunal) (01 Mar 2023)

Cenvat credit on the service of Repair and Maintenance during warranty period is allowable

MANU/CS/0089/2023

Service Tax

The issue involved is that whether the Appellant is entitled for cenvat credit in respect of after sale service provided during warranty period of the sale of the goods manufactured by the Respondent.

It is submitted that, the service provided during warranty period is after removal of the goods from the factory therefore, the service is not provided in or in relation to the manufacture of excisable goods. He submits that as per Rule 2(l) of the Cenvat Credit Rules, 2004, the only services which were provided up to the place of removal is cenvatable whereas, in the present case the service of after sales service in respect of the goods manufactured and sold by the respondent was provided after removal and sale of the pumps therefore, the cenvat credit is not admissible.

The service on which the Respondent have taken the cenvat credit is provided in the nature of Repair and Maintenance of the excisable goods i.e. pumps sold by the respondent during the warranty period. The policy of free servicing during warranty period is not under dispute. The Respondent is not collecting the service charges from the customer which is the service during the warranty period is provided free of cost therefore, the cost of such service stand included in the transaction value of the excisable goods sold by the respondent. The service charges stand included in the value of the manufacture of goods hence, it can be conveniently viewed that the activity of servicing during warranty period is in relation to the manufacture of final product. Moreover, the servicing during warranty period is a vital part of the business activity of the respondent.

Rule 2(l) particularly in the inclusion clause covers the ‘activities relating to business’ therefore, the said service during warranty period also clearly falls under the category of ‘activities relating to business’. The Respondent are entitled for the cenvat credit on the service of Repair & Maintenance during warranty period accordingly, the impugned order is upheld. Revenue’s appeal is dismissed.

Tags : WARRANTY PERIOD   CENVAT CREDIT   ELIGIBILITY  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved