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2023 (12) TMI 47 - CESTAT MUMBAICENVAT Credit - inputs or not - manufactured LED lights, fixtures and control panels etc. The department objected to the fact of availment of cenvat benefit on the ground that the appellant cannot avail of such credit of duty paid on their own finished goods, as the same cannot be treated as raw material/inputs for provision of taxable output services. HELD THAT:- On perusal of the definition of input is contained in Rule 2(k) of the CENVAT Credit Rules, 2004, it would reveal that all goods used by any service provider, for providing any output service, should be eligible for consideration as ‘input’. In this case, the disputed goods namely LED lightings, fixtures and control panels were used by the appellants for provision of the taxable services to the service recipient i.e., the Municipality/Municipal Corporation. Since, those disputed goods in the form of inputs were used and utilized for provision of the output service and service tax liability on provision of such services were duly discharged by the appellants, it cannot be said that the disputed goods shall not be considered as inputs for the provision of the output services. Further, consideration of the ownership is not a criteria for determining whether the disputed goods should be eligible for the cenvat benefit or otherwise. Since, there is no restriction or embargo created in the statute, for establishment of ownership of the goods, which are used for the provision of the output service, the impugned orders passed by the learned adjudicating authority cannot be sustained on such grounds. In other words, usage of inputs is only confined to the factory in case of a manufacturer and premises in case of service provider. There are no merits in the impugned order, insofar as the adjudged demands were confirmed on the appellants, holding that the disputed goods shall not be considered as inputs for the purpose of the provision of the taxable output service - appeal allowed.
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