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2010 (12) TMI 100 - AT - Service TaxInput services - cenvat credit - service tax paid on any service which was not taxable - The appellant had availed CENVAT credit on two input services, viz. (1) inspection and certification of pollution level; (2) operation and maintenance of sewage treatment plant. The authorities held that these services were not taxable services and, therefore, CENVAT credit of the service tax paid thereon was not admissible to the appellant - Held that: - The ratio of the decision in Mahaveer Surfactants (P) Ltd. (2008 -TMI - 32123 - CESTAT CHENNAI), which relates to input-duty credit, is applicable to the present case. It is not in dispute that the services in question were tax-paid and were used as input services by the appellant. The appellant was very much within their right to claim CENVAT credit of such tax. The Revenue has no case that the services in question were not covered by the definition of input service under Rule 2(l) of the CENVAT Credit Rules. In this scenario, credit of the amount of service tax paid on these services by the service provider would be admissible to the appellant under Rule 3(1) of the CENVAT Credit Rules.
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