2015 (11) TMI 1583 - AT - Service Tax

Cenvat credit - availed on input service for payment of Service Tax on transportation of Molasses Sludge - Held that:- the appellants availed credit on the inputs and input service for manufacture of dutiable final product and the waste was generated during the process of manufacture of dutiable final product. The Rule 6 of the said Rules would apply, on the inputs which are used in the manufacture of exempted final product. In the present case, the inputs were used not in the manufacture of exempted final products. It is used in the manufacture of dutiable final product. Hence, Rule 6(1) of the said Rules would not apply and there is no reason to deny the Cenvat credit on the input and input service credit used for transportation of the sludge. This view is also supported by the decision of the Tribunal in the case of M/s. Lupin Ltd. v. CCE&ST [2011 (5) TMI 802 - CESTAT, MUMBAI]. As the matter is decided on merit, there is no need to go into the limitation. - Decided in favour of appellant