LARSEN & TOUBRO LTD Vs CCE (MUMBAI CESTAT) (Appeal no. E/86264/14-Mum)
Facts:
The appellant, M/s Larsen & Toubro Ltd. under Rule 14 of the CENVAT Credit Rules, 2004 being ineligible CENVAT credit amount taken. The credit taken pertains to the supply of tangible goods for use at the job workers premises. Appellant submitted that the supply relates to material handling equipments and diesel generator sets for handling of the raw materials and finished products and manufacturing activities. The appellant had
arranged for supply of these goods and paid for the services rendered. Inasmuch as the service has been utilized in the manufacture of intermediate goods at the job workers premises which were returned to the appellant's factory for further manufacture, the said services come within the purview of input services as defined in rule 2(l) of the CENVAT Credit Rules, 2002.
Held:
the definition of 'input service' is very wide as held by the Bombay High Court in the case of Coca Cola India Pvt. Ltd. - when the said services were availed in appellant's factory premises, the credit has been allowed and if that be so merely because the same services were availed at job worker's premises, there is no reason to deny credit - prima facie case in favour - unconditional waiver of pre-deposit - Stay granted
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