LEROY SOMER INDIA PVT. LTD. Vs. COMMISSIONER OF C. EX.
LAWS(CE)-2015-3-73
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 26,2015

Leroy Somer India Pvt. Ltd. Appellant
VERSUS
COMMISSIONER OF C. EX. Respondents




JUDGEMENT

ASHOK JINDAL,J - (1.)THE appellant is in appeal against the impugned order denying Cenvat credit availed by the appellant for repairs and maintenance services of the goods sold by them during the period of warranty. The facts of the case are that the appellants is manufacturer of alternator and selling them to their buyer giving the guarantee that if in certain period any repairs and maintenance is required that is to be done by the appellant. To provide these services of repairs and maintenance appellant engaged certain services providers who provide these repairs and maintenance services on behalf of the appellant and appellant is paying Service Tax thereon and taking Cenvat credit on the Service Tax paid to the services provider.
(2.)Revenue is of the view that as the services has been rendered after the sale of the goods and the ownership of the appellant is not on the goods after sale. Therefore, that cannot be input service to the appellant. Therefore, show cause notice was issued to deny the Cenvat credit. The Adjudicating Authority allowed the Cenvat credit after relying on the decision in the case of CCE, Vadodara v. Danke Products - : 2009 (16) S.T.R. 576 (Tri. -Ahmd.) which has been appealed against by the Revenue in the case of Dankey & ABB Ltd. v. CCE - : 2009 (15) S.T.R. 23 (Tri. -LB) of this Tribunal. The said order was appealed against by this Revenue before the ld. Commissioner (A) who set aside the order. Consequently, the Cenvat credit was denied to the appellant. Therefore, appellant is before me.
(3.)THE ld. Counsel for the appellant submits that as it is the condition of sale that appellant shall provide free services during the warranty and for providing that services the appellant has appointed service provider on their behalf. Therefore, appellant is entitled to take Cenvat credit on the services taken by the services provider. To support his contention he relied on the decision in the case of CCE, Nashik v. Mahindra & Mahindra Ltd. - : 2012 (28) S.T.R. 382 (Tri. -Mumbai) and Telco Construction Equipment Co. Ltd. v. CCE, Belgaum - : 2013 (32) S.T.R. (482) (Tri. -Bang.).
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