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III. Indirect Tax Caselaw:
[Contribution by CA Sanjeev Singhal and contributor is available at sanjeev.singhal@skaca.in]
Deepak
Fertilizers and Petrochemicals Corpn. Ltd. Vs. Commissioner of Central
Excise, Central Excise Appeal No. 11 of 2013, Date: 06.03.2013, High
Court of Bombay
The assessee was engaged in the manufacturing of excisable goods and provision of output services. The assessee installed ammonia storage tank which is used as a raw material for manufacturing outside their factory. The assessee availed the CENVAT credit of service tax paid on input services used for installation of said ammonia tank. The department denied the CENVAT credit on services used in installation of storage tank with the view that the services are received outside the factory premises were not an input services. On an appeal to High Court, the HC held – the input services in the present case were used by the Appellant whether directly or indirectly, in or in relation to the manufacture of final products. The assessee was manufacturing dutiable final products and the storage and use of ammonia is an intrinsic part of that process. Hence, assessee was eligible for input service credit.
(Please click here for judgment)
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