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2015 (11) TMI 1588 - CESTAT NEW DELHIDenial of CENVAT credit - job worker/ service provider on crossing charges of iron ore undertaken in its factory - whether the denial justified on the ground that the quantity of iron ore actually sent from the factory to the job worker were not received after its crossing by the job worker - Held that: - Sub-rule (1) of Rule 3 is enabling provision, which entitles a manufacturer to take cenvat credit on input, capital goods and input services received by the manufacturer of final product. In case of input service, the requirement is that the same has to be received by the manufacturer of final product. Since, with regard to the taxable service, no provisions exist in the statute that the services have to be received in the factory of the manufacturer, I am of the opinion that cenvat credit can only be taken on the actual amount of service tax paid by the service provider, which in the present case is the job worker. The service being not tangible, it is not ascertainable as to how much service is attributable to the goods actually received in the factory after completion of the job work process. Service tax paid on the job charges is available to the appellant and the cenvat credit is not required to be reversed, in the eventuality, where lesser quantity of goods received in the factory after completion of the job work activity - appeal allowed - decided in favor of appellant.
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