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2009 (7) TMI 608 - AT - Service TaxCenvat Credit- The respondents are engaged in the manufacture of Iron and Steel Castings, dutiable and exempted goods. The Original Authority denied Cenvat credit on the services tax paid on GTA used on the transportation of procurement of the raw material, used in the manufacture of exempted and dutiable goods. Further, Cenvat credit on Service Tax of GTA was denied on removal of inputs as such. The Commissioner (Appeals) set aside denial of credit. Hence, revenue filed this appeal. In the light of the decision of Chitrakoot Steel & Power (P.) Ltd. v. CCE 2008 -TMI - 3795 - CESTAT, CHENNAI, where as held that- the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, rule 14 of the Cenvat Credit Rules, 2004 provides for recovery of Cenvat credit availed or utilised wrongly. In the instant case, the appellants had taken the credit correctly in terms of the statutory provisions, held that- there is no reason to interfere the order of the Commissioner (Appeals). Accordingly, the appeal filed by the revenue is rejected.
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