LEOTRONICS SCALES PVT. LTD. Vs. CCE, CHANDIGARH
LAWS(CE)-2015-1-102
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 23,2015

Leotronics Scales Pvt. Ltd. Appellant
VERSUS
Cce, Chandigarh Respondents




JUDGEMENT

P.S. Pruthi, Member (T) - (1.)THE appellant is in appeal against the impugned Order -in -Appeal in which the Commissioner (Appeals) has confirmed the demand of Rs. 5,09,888/ - alongwith interest and imposed penalties under sections 75A, 77 and 78 of Finance Act, 1994.
(2.)THE facts of the case are that the appellant are engaged in the manufacture of electronic Weigh Bridges. They are registered with the department under the category of Management, Maintenance and Repair service, Commercial or industrial construction services, and Transportation of goods by road service. They had executed annual maintenance contract with the parties to whom they sold weigh bridges. The Maintenance and Repair service was introduced in the Finance Act, 1994 with effect from 1.7.2003. In relation to annual maintenance contract signed before 1.7.2003, the appellant raised the bills prior to 1.7.2003 but the payments were received after 1.7.2003. The demand of Rs. 1,83,510/ - has been confirmed on the payments received after 1.7.2003 by invoking the extended period of limitation.
The other issue in the present case relates to availment of abatement of 67% on the value of Commercial and industrial construction service provided by the appellant in terms of condition of Notification No. dated 10.6.2004 as amended by Notification No. dated 1.3.2006. The issue was that the exemption provided in above notification was not applicable in cases where credit of duty paid on inputs and capital goods had been taken under the provisions of Cenvat Credit Rules. As the appellants had availed credit on inputs, capital goods and input services, the benefit of abatement in terms of notification was denied and demand of Rs. 3,26,378/ - for the period April to September, 2006 confirmed and penalties were imposed.

(3.)HEARD both sides and perused the records.
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