Case Law Details
C.C.E. & S.T.-Rajkot Vs Falcon Pumps Private Limited (CESTAT Ahmedabad)
CESTAT find that the service on which the respondent have taken the cenvat credit is provided in the nature of Repair & Maintenance of the excisable goods i.e. pumps sold by the respondent during the warranty period. It is also observed that the policy of free servicing during warranty period is not under dispute. The respondent is not collecting the service charges from the customer which is the service during the warranty period is provided free of cost therefore, the cost of such service stand included in the transaction value of the excisable goods sold by the respondent. In this fact, the service charges stand included in the value of the manufacture of goods hence, it can be conveniently viewed that the activity of servicing during warranty period is in relation to the manufacture of final product. Moreover, the servicing during warranty period is a vital part of the business activity of the respondent.
Rule 2(l) particularly in the inclusion clause covers the ‘activities relating to business’ therefore, the said service during warranty period also clearly falls under the category of ‘activities relating to business’.
CESTAT held that respondent are entitle for the cenvat credit on the service of Repair & Maintenance during warranty period
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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