Credit cannot be denied on services used for providing warranty services

Power Build Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)

Warranty Service which implies that the value is already included in the sale price of the goods. Moreover, there is no requirement in the definition of Input Service that the value is to be included in the assessable value for the purpose of Central Excise before the credit can be allowed. There is no such restriction in the definition of input service.

FULL TEXT OF THE CESTAT JUDGEMENT

These appeals have been filed by M/s. Power Build Ltd. against denial of Cenvat Credit on services availed for providing Warranty Services to their clients.

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