Appellate Tribunal allows cenvat credit for service tax on machine repairs

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellant, allowing them to claim cenvat credit for service tax incurred on repairing machines at dealer premises. The appellant's status as a service provider to the dealers made the service tax payment for repairs irrelevant under the law.

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The Appellate Tribunal CESTAT Mumbai allowed the appeal stating that when a machine installed in a dealer's premises undergoes repair and service tax is incurred, the appellant providing the service is eligible for cenvat credit. The appellant is recognized as a service provider to the dealers, making the service tax payable for the repair irrelevant to the law.

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