C.L. Mahar DECISION
Ramesh Nair, Member (J)
1. The issue involved is that whether the appellant is entitle for cenvat credit in respect of after sale service provided during warranty period of the sale of the goods manufactured by the respondent.
2. Shri Vijay G. Iyengar, learned Assistant Commissioner (AR) appearing on behalf of the revenue reiterates the grounds of appeal. He submits that the service provided during warranty period is after removal of the goods from the factory therefore, the service is not provided in or in relation to the manufacture of excisable goods. He submits that as per rule 2(l), the only services which were provided up to the place of removal is cenvatable whereas, in the present case the service of after sales service in respect of the goods manufactured and sold by the respondent was provided after removal and sale of the pumps therefore, the cenvat credit is not admissible.
3. Shri P D Rachchh, learned counsel appearing on behalf of the respondent submits that the after sale service during warranty period is included in the term 'in or in relation to manufacture of excisable goods'. The value of such service has been included in the transaction value of the pumps sold by the respondent on which excise duty was discharged. He submits that in this fact firstly, the service was used in or in relation to manufacture of final product secondly, even if there is any demand, the service is clearly covered under the inclusion clause of service related to business activity therefore, on both the count the respondent are entitle for the cenvat credit. He placed reliance on the following judgments:-
• RAMALA SAHKARI CHINI MILLS LTD.- MANU/SC/1006/2010 : 2010 (260) ELT 321 (SC)
• RELIANCE INDUSTRIES LTD.- 2022 (260) ELT 457 (TRI.-LB)
• COCA COLA INDIA PVT. LTD.- MANU/MH/0784/2009 : 2009 (15) STR 657 (BOM)
• LEROY SOMER INDIA PVT. LTD.-MANU/CE/0304/2015 : 2015 (39) STR 466 (TRI-LB)
• MAHINDRA & MAHINDRA LTD.- MANU/CM/0091/2012 : 2012 (28) STR 382 (TRI.-MUMBAI)
• PURVAM TRANSFORMERS (I) PVT. LTD.- 2009-TIOL 1337-CESTAT-AHM
4. We have carefully considered the submissions made by both the sides and perused the records. We find that the service on which the respondent have taken the cenvat credit is provided in the nature of Repair & Maintenance of the excisable goods i.e. pumps sold by the respondent during the warranty period. It is also observed that the policy of free servicing during warranty period is not under dispute. The respondent is not collecting the service charges from the customer which is the service during the warranty period is provided free of cost therefore, the cost of such ........