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G. S. SANDHAWALIA, HARPREET KAUR JEEWAN
Commissioner of Central Excise, Delhi-III – Appellant
Versus
Maruti Suzuki India Ltd. – Respondent
JUDGMENT
Mr. G.S.Sandhawalia, J. - The present appeal filed under section 35(G) of the CENTRAL EXCISE ACT , 1944 (in short 'the Act') is directed against the order dated 21.02.2019 (Annexure A-3) passed by the Customs Excise and Service Tax Appellate Tribunal, Chandigarh (in short 'the Tribunal'). The Tribunal by a common order had allowed the appeal filed by the respondent-assessee (herein) and dismissed the appeal filed by the Revenue. The Tribunal recorded that for the services in question in which credit is denied had been received prior to 01.04.2011 and by placing reliance upon the judgment of the Bombay High Court in Commissioner of Central Excise v. Ultratech Cement Ltd. , 2010 (260) ELT 369, it went on to hold that any service availed by an assessee being a manufacturer of excisable goods would be entitled to avail credit in terms of Rule 2(l) of CENVAT CREDIT RULES , 2004. The services having been availed were for technical assistance for engineering design, development, manufacture, testing, quality control, sale of the goods and after-sale service in accordance with agreement, the benefit was granted to avail credit on the said services and the denial of credit of Rs.9
Cenvat credit is allowable on services integral to the manufacturing and export processes, affirming a wide interpretation of 'input service' under CENVAT Credit Rules.
The court held that input services for setting up and modernizing a factory qualify for Cenvat credit, as they are deemed essential for manufacturing processes under the Cenvat Credit Rules.
A manufacturer / consignor can take credit on the service tax paid on outward transport of goods up to the place of removal and not beyond that.
Tax paid on services for transporting goods from place of removal to the first point, depot or consumer, qualifies for CENVAT credit.
CENVAT credit cannot be denied based solely on shortages; it requires clear evidence of clandestine removal and credible links to capital goods definitions under applicable laws.
The nature of services provided by commission agents for sales promotion and the retrospective application of legal provisions can influence the eligibility of CENVAT Credit under the CENVAT Credit R....
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