Tribunal allows service tax credit for assembling & installation services, deeming departmental concerns irrelevant.

The Tribunal held in favor of the appellant, ruling that the disallowance of service tax credit for assembling and installation services was incorrect. The Tribunal found that such services were part of the manufacturing activity, as supported by previous Tribunal decisions. The additional issues raised by the department regarding ISD registration and credit invoice details were deemed irrelevant. Consequently, the Tribunal set aside the impugned orders and allowed the appeals with any necessary relief according to the law.

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Issues: Disallowance of service tax credit for assembling and installation services.

In this case, the appellant issued purchase orders for furniture in CKD condition and sub-contracted assembling/installation services, availing cenvat credit on the service tax paid. The department contended that such services were post-manufacturing activities, thus not eligible for credit. The appellant argued that assembling/installation were part of manufacturing activity, citing earlier Tribunal orders in their favor. The department also raised issues regarding ISD registration and credit invoice details.

The Tribunal noted the main allegation against the appellant was the ineligibility of credit due to post-manufacturing activity. It was observed that the issue had been settled in favor of the appellant in earlier periods. The department's additional arguments regarding ISD registration were deemed irrelevant as they were not part of the original allegations. Consequently, the Tribunal held that the credit had been wrongly disallowed, setting aside the impugned orders and allowing the appeals with any consequential relief as per law.

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