The CESTAT, Ahmedabad bench has held that the cenvat credit cannot be denied on warranty services provided free of cost during the warranty period. The appellants approached the Tribunal challenging the order of the department denying Cenvat Credit of services provided by them to their customers during warranty period through a third party on free of cost basis. The credit is in respect of maintenance and repair services provided by the authorized dealers/ franchises of the appellant, to the customers, for which there is no charge on the customers and for which the appellant are paying the authorized dealers/ franchises. The Authorized dealers/franchises paid service tax on the amount received from the appellant and the appellant have claimed Cenvat Credit of the said amount.
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