2015 (12) TMI 596 - AT - Service Tax

Appellate Tribunal grants input service credit for job work charges, ruling in favor of manufacturing activity

The Appellate Tribunal CESTAT New Delhi allowed the appellant's appeal, granting input service credit on job work charges for re-shelling of rollers, ... Denial of input service credit - Technical service - job work charges paid to the job worker for re-shelling of the rollers - Held that:- In this case the technical services is not an issue. The issue is that the appellant has paid job work charges of the re-shelling of the rollers to the job workers. It is very much related to the manufacturing activity of the appellant. Therefore, I hold that appellant is entitled to take Cenvat credit on these charges paid to the job workers. - Decided in favour of assessee. The Appellate Tribunal CESTAT New Delhi allowed the appeal of the appellant against the impugned order denying input service credit on technical services, which were actually job work charges paid to job workers for re-shelling of rollers. The Tribunal held that the appellant is entitled to take Cenvat credit on these charges as they are related to the manufacturing activity. Therefore, the impugned order was set aside, and the appeal was allowed with consequential relief if any.