TaxTMI 
TaxTMI 
2022 (7) TMI 87
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....y considered the submissions made by both the sides and perused the records. We find that this issue is no longer res-integra as in the appellant's own case this tribunal vide order dated 31.03.2022 passed the following order:- 4. We have considered the rival submissions. We find that the issue regarding admissibility of cenvat credit on warranty service has been examined in detail by the Tribunal in the order in the case of M/s Case New Holland Construction Equipment (I) Pvt Ltd- 2021 (8) TMI 963- CESTAT New Delhi. It is seen that the said order examines the admissibility of credit for periods both pre and post 01.04.2011. The said decisions also examines the decision of Tribunal in the case of Mahindra and Mahindra Ltd cited by the Learned AR. In the said decision following has been observed:- 17. The submissions advanced by the learned Counsel for the appellant and the learned Authorized Representative of the Department have been considered. 18. The appellant claims that it is eligible for CENVAT credit on the in-warranty repair and maintenance services under the 'means' clause of the definition of 'input service' in rule 2(l) of the Credit Rules which requires the s....
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.....2011 and it is reproduced below : w.e.f 01.04.2011 "2(l) "input service" means any service,- (i) used by a provider of output service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but exclude, Xxxxxxxxxxx xxxxxxxxxxx xxxxxxxx xxx" (emphasis supplied) 22. Rule 2(l), as it stood prior to 01.04.2011, is also reproduced below : prior to 01.04.2011 "2(l) "input ....
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....ugh the dealers to the customers, the appellant was under an obligation to provide free 'repair and maintenance service' during the warranty period of twelve months. This service, at the behest of the appellant, was being provided by the dealers and for the payments received by them from the appellant, service tax was paid by the dealers. The dispute that had arisen in the Appeal was whether the appellant could avail credit of the service tax paid by the dealers on the 'repair and maintenance service' provided by them to the consumers on behalf of the appellant. The Department took a view that the appellant would not be eligible for such CENVAT credit and a demand of Rs. 9,82,03,090/- was made on this basis. The Tribunal observed that the services received by the appellant from the dealers has to be treated as 'input service' used in or in relation to the manufacture of the final products by the appellant and, therefore, the demand that was confirmed was not sustainable. The relevant portion of the decision of the Tribunal is reproduced below : "10. The Cenvat credit demand of Rs. 9,82,03,090/- is in respect of the service received from the dealers who had provided repair and ma....
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....of repairs received from their authorized service stations during the period of warranty in view of the decision of 15 E/52867/2018 the Tribunal in Carrier Air conditioning & Regrigeration. The relevant portion of the decision is reproduced below : "8. We have heard both the sides and perused the record of the appeal. We feel that so far as the credit on services received by appellant from their authorized service stations with regard to free after sale services and repairs etc. of warranty period, the matter is no longer res-integra as this Tribunal in the case of Carrier Air conditioning & Refrigeration Ltd. vs. CCE, Gurgaon - 2016 (41) S.T.R. 1004 (Tri. - Del.) has already held that services provided by the authorized representative/ service stations are on behalf of the manufacturer and the service tax paid on availment of such services by the manufacturer, they are entitled for Cenvat credit of such input services............... 9. Accordingly, we hold that since the value of free after sale services and the warranty period repairs and maintenance are already included in the assessable value of the two wheelers, the service tax paid on availment of such input services by....
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....s' part of the definition of 'input service' and have not considered the 'includes' part of the definition of 'input service. The decisions clearly hold that the services received from the dealers would be 'input service' used in or in relation to the manufacture of the final products. 31. The factual position in the Division Bench decisions of the Tribunal and the decision dated 24.11.2017 rendered by the Tribunal in the case of the appellant for earlier period is almost identical. It also needs to be noted that the decisions of the Tribunal in Carrier Air conditioning & Refrigeration, Honda Motorcycle and Samsung India Electronics are based on the 'means' part of the definition of 'input service', which part of the definition had not undergone any change on 01.04.2011. However, the Tribunal in the decision dated 24.11.2017 distinguished the aforesaid decisions of the Tribunal solely for the reason that an amendment had been made in the definition of 'input service' on 01.04.2011. It is no doubt true that an amendment was made on 01.04.2011, but that amendment was made in the 'inclusive' part of the definition of input service. 32. The issue, therefore, that would arise for ....
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....orance of a previous decision of its own or of a court of co-ordinate jurisdiction which covered the case before it, in which case it must decide which case to follow; or when it has acted in ignorance of a House of Lords decision, in which case it must follow that decision; or when the decision is given in ignorance of the terms of a statue or rule having statutory force. A decision should not be treated as given per incuriam, however, simply because of a deficiency of parties, or because the court had not the benefit of the best argument, and as a general rule, the only cases in which decisions should be held to be given per incuriam are those given in ignorance of some consistent statue or binding authority. Even if a decision of the Court Appeal must follow its previous decision and leave the House of Lords of rectify the mistake." 37. In Babu Parasu Kaikadi (Dead) by Lrs. vs. Babu (Dead) Through Lrs.13 , the Supreme Court observed: "14. Having given our anxious thought, we are of the opinion that for the reasons stated hereinbefore, the decision of this Court in Dhondiram Tatoba Kadam having not noticed the earlier binding precedent of a coordinate Bench and having not c....