Manufacturer allowed input tax credit on warranty service post-sale. Repair charges during warranty period qualify for credit.

The Tribunal allowed the manufacturer's appeal against the denial of input service credit on warranty service post-sale. Relying on a precedent, it held that repair charges paid to dealers during the warranty period qualify for input service credit as they are connected to the sale of goods. The impugned orders were deemed meritless, and the appeals were allowed with any consequential relief. The application for an extension of stay was disposed of accordingly.

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Issues involved:
Denial of input service credit on warranty service post-sale.

Analysis:
The appellant, a manufacturer of equipments, appealed against the denial of input service credit on warranty service availed post-sale. The impugned order contended that warranty service was provided after the sale of equipments, thus disallowing the credit. The appellant's dealers repaired equipments during the warranty period, charging repair fees. The Revenue argued against granting input service credit due to the post-sale nature of warranty service.

The Tribunal referred to a precedent, CCE, Vadodara-II vs. Danke Products, where it was established that repair and maintenance during the warranty period are activities related to the sale of goods. Citing this precedent, the Tribunal concluded that the repair charges paid to dealers by the appellant qualify for input service credit as they are connected to the sale of goods. Consequently, the impugned orders were deemed meritless, and the appeals were allowed with any consequential relief. Additionally, the application for an extension of stay was disposed of accordingly.

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