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2018 (5) TMI 1499 - AT - Central ExciseCENVAT credit - input services - Manpower Supply by service provider, namely, S. B Sharma & Co. in relation to shifting of finished goods loading of Trucks, Trailors etc., within the factory premises - Held that - undisputedly the appellant had received the services relating to Manpower Supply from the service provider and used the said service in or in relation to the manufacturing of finished goods, that is, shifting the raw-material finished goods from one godown to another godown, hence, definitely has nexus with the manufacturing activity - credit allowed - appeal allowed - decided in favor of appellant.
Issues:
- Appeal against order-in-appeal denying Cenvat credit for service tax paid on Manpower Supply within factory premises. Analysis: The appeal in this case was filed against the order-in-appeal denying Cenvat credit for service tax paid on Manpower Supply within the factory premises. The appellant had availed Cenvat credit of service tax paid on Manpower Supply by a service provider, S. B Sharma & Co., for activities such as shifting finished goods and loading trucks within the factory premises. The dispute arose when a show cause notice was issued alleging that the service did not fall within the scope of the definition of 'Input Service'. The demand was confirmed with interest and penalty, leading to the appeal before the Ld. Commissioner (Appeals), who rejected it, prompting the present appeals. During the proceedings, the appellant's representative argued that the services received were used within the factory premises and had a direct nexus with the manufacturing activity. It was contended that the service tax paid on Manpower Supply Service by the service provider should be eligible for credit. On the other hand, the Revenue's representative reiterated the findings of the Ld. Commissioner (Appeals). The Tribunal, after considering the arguments and facts presented, observed that the appellant had indeed received services related to Manpower Supply within the factory premises and utilized these services for activities directly linked to manufacturing, such as shifting finished goods between godowns. Consequently, the Tribunal concluded that there was a clear nexus between the services received and the manufacturing activity, making the appellant eligible for credit within the scope of the definition of 'Input Service' under Rule 2 (l) of CCR, 2004. As a result, the impugned order was set aside, and the appeal was allowed. The judgment was dictated and pronounced in open court by Dr. D. M. Misra, Member (Judicial) of the Appellate Tribunal CESTAT AHMEDABAD.
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