TaxTMI 
TaxTMI 
2011 (3) TMI 610
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....ering firms, viz., M/s. INEL Power Systems Engineers (P) Ltd., and M/s. INE Value Creators & Consultants, to undertake repair services at the customers' site. The services had been rendered on behalf of the respondents, and these firms raised invoices on the respondents including service tax, who in turn after availing credit raised invoices on the customers for service charges plus service tax. The respondents had taken credit of service tax so paid amounting to Rs.6,80,291/- at their manufacturing unit and have utilised the same for payment of excise duty. Since the repairs are undertaken at customers' site, it appeared that the said services had no relevance to the manufacturing activities and hence would not qualify as input service. He....
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....y because they are centrally registered. Learned SDR also submits that the department is not disputing the eligibility of credit when the respondents are directly undertaking the repair services and raising invoices directly on the customers. 5. Learned advocate for the respondents strongly supports to the order of the Commissioner (Appeals). He draws my attention to the findings of the original authority that the respondents are paying service tax in respect of the amounts collected from the ultimate customers for the activities executed through the engineering firms appointed by the respondents. The services rendered by the engineering firms is in connection with the overall services rendered by the respondents to the ultimate cus....
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....s from the engineering firms appointed by them. They receive payment of service charges from the ultimate customers and part of it is paid to the sub-contractors for the services rendered by them and naturally the respondents are making some profits. When service tax is being paid on the full amount paid by their customers to the respondents, the service charges paid by the respondents to the sub-contract engineering firms has to be treated as towards services received by them from the said firm and such services definitely qualify to be considered as input services. Therefore, the service tax paid by the engineering contracting firms has been rightly taken as credit by the respondents as held by the Commissioner (Appeals). 7.1 Rega....