2018 (12) TMI 17

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.... availed Cenvat Credit of the Central Excise duty paid on tippers on an understanding that they are eligible for Cenvat Credit. Department opposed that credit of Central Excise duty paid on motor vehicles are not eligible as they are not providing the required services as per the definition of capital goods under Rule 2(a) of Cenvat Credit Rules. For the period November, 2006 to September, 2008, appellant had not included the value of free supplies of explosives and diesel given to them by M/s Singareni Collieries Company Ltd (SCCL) and the tax was discharged on the amount actually collected by them for the services rendered on blasting etc. Appellant contested the show cause notice on merits stating that value of free supplies of diesel an....

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....s upon the decision of Vikas Metalliks & Energy Ltd [2017 (3) GSTL 404] for his submissions and also submits that Hon'ble High Court of Chhattisgarh upheld the said judgment as is reported at [2018 (14) GSTL 23 (Chhattisgarh)]; also relies upon Soumya Mining Ltd [2017 TIOL 2432 (CESTAT-Delhi)] wherein identical issue is decided. 4. Learned departmental representative reiterates the findings of the lower authorities. 5. We have considered the submissions made by both sides and perused the records. 6. As regards the inclusion of the value of free supplies of explosives and diesel from SCCL, we find that the issue is now settled by the Apex Court in the appellant's own case in their favour. We reproduce Para 31 from the judgment of Apex Cou....

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....d under Section 65 (105) (zr) of the Finance Act, 1994 and these services are considered as eligible output services for availing Cenvat Credit on motor vehicles registered as capital goods. The findings of the adjudicating authority that appellant had artificially separated the composite contract into site formation services and cargo handling services to avail Cenvat Credit seems to be only on presumption and surmises, as we do not find any evidence to back up such findings. Be that as it may, when it is undisputed that revenue is collecting service tax from the appellant under cargo handling services and having not re-classified the services, they cannot now turn around and say that the services rendered by the appellant could not fall u....