Case Law Details
Integra Engineering India Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
Introduction: The case of “Integra Engineering India Limited vs. Commissioner of Central Excise & ST” heard by the Central Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad involves the utilization of Cenvat credit for the payment of service tax. The central question revolves around whether an appellant, engaged in both manufacturing and service provision, is eligible to use Cenvat credit related to manufacturing activities to pay service tax on output services. This article provides an in-depth analysis of the case, including the key facts, arguments, CESTAT’s findings, and the conclusion.
Detailed Analysis:
1. Background of the Case: Integra Engineering India Limited is involved in both the manufacturing of excisable goods and the provision of output services, specifically renting immovable property. They hold Central Excise registration for manufacturing and Service Tax registration for their service. The appellant avails Cenvat credit on inputs and input services for their manufacturing activities. They used Cenvat credit from the common pool, including that related to manufacturing, to pay service tax on renting immovable property.
2. Key Arguments: The department argued that since the Cenvat credit was availed on inputs and input services related to manufacturing, it couldn’t be used to pay service tax on renting immovable property. The show cause notice demanded service tax payment for this reason. The appellant contended that there was no prohibition on utilizing credit related to manufacturing for service tax payment when an entity is engaged in both activities.
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