TMI Blog2009 (10) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ey had availed input service credit on dry cleaning service. Adjudicating authority denied said credit. Held that- as regards dry cleaning services, there is no dispute that wearing of clean uniforms/clothing is mandatory under drugs and cosmetics act for personnel engaged in the manufacturing of medicaments or drugs. Therefore, dry cleaning services are clearly related to the business of manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OTI BALASUNDARAM, VICE PRESIDENT Ms. Indira Sisupal for the Appellant. M.N. Bharathi for the Respondent. ORDER 1. The respondents herein who are engaged in the manufacture of P P medicaments were availing Cenvat credit on inputs and input service credit under the Cenvat Credit Rules, 2004. During the period November, 2005 to March, 2006, they had availed input service credit on dry clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t service as defined under rule 2(l) of the Cenvat Credit Rules, 2004 is under : "... any service, (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT) and CCE v. Adani Pharmachem (P.) Ltd. [2009] 19 STT 239 (Ahd. - CESTAT). The decision of the Tribunal in Excel Crop Care Ltd. v. CCE [2007] 9 STT 249 (Ahd. - CESTAT) which has been relied upon by the revenue and followed in Nirma Ltd. v. CCE [2009] 21 STT 125 (Ahd. - CESTAT) holding that credit is not admissible, has been distinguished in Rolex Rings (P.) Ltd.'s case (supra) on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r personnel engaged in the manufacturing of medicaments or drugs. Therefore, dry cleaning services are clearly related to the business of manufacture of their final products. Hence they are entitled to Cenvat credit of service tax availed on dry cleaning service. As regards telephone service, since they are required to meet out day-to-day business activities, such services are also in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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