2015 (4) TMI 34

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....s period the appellant took cenvat credit of Rs. 2.23 Crores of the service tax paid on the repair and maintenance service received by them from M/s.Take Care India Pvt. Ltd. for repair and maintenance of refrigerators sold by them to various customers during warranty period. The Department was of the view that, the service received by the appellant for repair and maintenance of refrigerators warranty period can be in respect of the goods manufactured by the other factories of the appellant company and as such it cannot be said that the service provided by M/s. Take Care (India) Pvt. Ltd. has been used only by the appellant unit. Accordingly, the Department was of the view that the appellant is not eligible for the cenvat credit during the ....

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....t credit. 1.2 It is on the basis that the Commissioner by the impugned order-in original dated 15.04.2014 confirmed the cenvat credit demand of Rs. 3.49 Crores against the appellant alongwith interest thereon under section 11AB and imposed penalty equal to 50% of the cenvat credit demand under Rule 15 (2) of Cenvat Credit Rules, 2004 read with section 11 AC (b) of the Central Excise Act. Against this order of the Commissioner this appeal has been filed alongwith stay application. 2. Heard both sides in respect of the stay application. 3. Shri B.L. Narasimhan, Advocate, the learned Counsel for the appellant, pleaded that the agreement for providing repair and maintenance service during warranty period was between the appellant unit ....

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....it and not by any other factories of Videocon Industries Ltd., that as regards the advertisement service for promotion of the brand name Kelvinator, this brand name is being used only on the refrigerators being manufactured by the appellant unit and the same is not being used on any other products of M/s.Videocon Industries Ltd. manufactured by any other factory, that this service also has been used by the appellant unit and hence, the appellant unit would be eligible for Cenvat credit, that the appellant has strong prima-facie case in their favour and as such the impugned order is not correct and that in view of this requirement of Cenvat credit demand, interest thereon and penalty may be waived for hearing of the appeal and recovery there....