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Cenvat Credit of AMC of A.C. and Lifts
Central Excise - Cenvat Credit on AMC of air conditioners & AMC for lifts – various other services –
HELD - The air conditioners are installed in the office as well as manufacturing area to maintain adequate temperature for manufacture of good. This service can be treated an activity of modernization of factory and office of the factory premises.
Therefore, the same qualify as input service as per Rule 2 (I) of Cenvat Credit Rules, 2004 - the credit on AMC of air conditioners is allowed -
AMC of lifts - As the usage of lifts has been explained by the appellant that the lifts facilitate in movement of raw material and finished goods manufactured by the appellant. Therefore, the AMC of lifts has nexus with manufacture of excisable goods. Therefore, the appellant is entitled for credit on AMC of lifts as per Rule 2(I) - appellant is entitled to avail the credit except the services namely, tour and travel service on which the appellant has already reversed the credit alongwith interest – appeal allowed