DOOSAN INFRACORE (INDIA) PVT. LTD. Vs. COMMISSIONER OF SERVICE TAX CHENNAI
LAWS(CE)-2015-5-30
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 01,2015

Doosan Infracore (India) Pvt. Ltd. Appellant
VERSUS
Commissioner Of Service Tax Chennai Respondents

JUDGEMENT

D.N.PANDA, MEMBER (J) - (1.)THE assessee's appeal is against disallowance of cenvat credit of Rs. 2,51,666/ - covered by show cause notice No. 217/2012 dt. 24.4.2012. This is on account of network services availed by the appellant held to be not attributable to the output service provided, whereas the learned counsel submits that it has direct nexus since the appellant is engaged in the management, maintenance & repair services of heavy engineering and I.T. network services were used in input services for which expenditure incurred by appellant has suffered service tax.
(2.)The appeal is taken up today for disposal as the matter is on limited compass. The question involved is whether the service tax paid on network service availed by the appellant for its computer network to provide input service for generation of output service of management, and repair of heavy machinery, shall entitle the assessee to the cenvat credit of that tax. The network services availed by the appellant to make its own mail/server functional having its integral connection to generate the output service is a tool for such output service. Therefore, appellant deserves relief on this count. Revenues both the appeals are trying to disallow the relief granted on account of network service availed by the appellant which is of the nature aforesaid. In view of the factual and legal position above, Revenues appeals on this count is dismissed.
(3.)THE second grievance of Revenue is that the taxes paid for GTA service availed is not permissible as cenvat credit to the assessee. But learned authority below found that Rs. 6,09,756/ - towards service tax on GTA is covered by SCN No. 50/2011 dt. 14.3.2011 having been discharged by the assessee, it claimed benefit of cenvat credit to that extent only. Ld. Counsel submits today that as an abundant caution, the said amount of Rs. 6,09,756/ - has also been reversed. Therefore, Revenues contention on this count of cenvat credit on GTA service fails for which Revenue's appeal is dismissed.
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