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April 2008

CENVAT Credit

By Puloma Dalal, Bakul B. Mody, Chartered Accountants
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3. CENVAT Credit :



(a) Repair and maintenance services used for residential
colony by appellant-manufacturer — Residential colony necessary as factory
situated in remote area — Presence of workmen on the spot required to maintain
continuity in manufacture — Impugned services relatable to business — Repairs
and maintenance and civil construction for residential colony held as being
input services and, credit thereon held as admissible — Rules 2(l), 3 and 14
of Cenvat Credit Rules, 2004.

[Manikgarh Cement v. CCE, (2008) 9 STR 554 (Tri —
Mumbai)]

(b) Service Tax paid was allowed as CENVAT credit in
impugned order in respect of commission paid to agent. However, Revenue filed
an application for stay of the said order. It was held that Input service
means any service used by manufacturer directly or indirectly in manufacture
of final products and their clearance from place of removal — Input service
includes services used in relation to advertisement and sales promotion — Stay
of impugned order not granted — S. 86 of the Act, Rules 2(l) and 3 of Cenvat
Credit Rules, 2004.

[CCE v. Abhishek Industries Ltd., (2008) 9 STR 562
(Tri — Del.)]

 

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