IFB INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) LEARNED Authorised Representative submits that this Appellant has not at all used any input for providing free services. He submits that the Appellant makes sale of home appliances. There is no involvement of any input at the time of sale. Apart from sale, the Appellant also undertakes repair and maintenance of home appliances which is a post sale activity. In that case, there is possibility of involvement of input. Those services had been taxed and the Appellant has paid taxes. There is another category of activity carried out by the Appellant which is the service provided during warranty period. For such services, there is no consideration received by the Appellant. There is scope of use of inputs for such category of service. Because warranty services is tax free, the input used by the Appellant to discharge obligation shall enjoy also Cenvat credit without being recovered in terms of Rule 6 of the Cenvat Credit Rules, 2004. Accordingly pre -deposit may be waived.

(2.) LD . DR, Shri Vijai Kumar submits that ld. Commissioner categorically found out that they have not maintained separate books of account to monitor all types of activities. In para 4.3 and 4.11, the Authority has found out that in absence of the records, it was not practically possible for him to grant benefit in respect of the services provided under Rule 6 of Cenvat Credit Rules 2004. The Appellant failed to produce evidence in support of its claim. To this submission, ld. Authorised Representative objects on the ground that the Authorities did not demand all the invoices for examination. Therefore such an allegation is unsustainable.

(3.) WE are able to understand type of activities carried out by the Appellant. Nothing is noticeable from the order as to the extent of examination of the value of the taxable services and non -taxable services. Similarly order does not depict the value of the inputs used in these categories of services. In absence of a speaking order, we are able to appreciate that waiving pre -deposit shall (sic) meet end of justice. Accordingly, we waive pre -deposit during pendency of the appeal.