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2012 (12) TMI 830 - AT - Central ExciseEligibility to take Cenvat credit – Whether storage up to the place of removal used in the definition of input service will cover storage at the place of removal also – Held that:- The place where goods are stored after clearance from the factory on payment of duty can be considered as "place of removal" for the purpose of Rule 2(l) of Cenvat Credit Rules, 2004 is no longer res integra because of the clarification issued by the CBEC in the matter and approved by the decision in the case of LG Electronics (2010 (4) TMI 322 - CESTAT, NEW DELHI) and Ambuja Cements v. Union of India [2009 (2) TMI 50 - PUNJAB & HARYANA HIGH COURT]. Therefore the godowns at Agra and Farrukhabad are to be considered as "place of removal" for the appellant notwithstanding the fact that sugar is an item subjected to specific rate of duty. Rule 2(l) of Cenvat Credit Rules specifically includes many post manufacturing activities like service relating to sales, promotion etc and therefore standard prescribed for inputs cannot be adopted for input services. Therefore not convinced by the argument advanced by Revenue that these services have no nexus the goods manufactured. No reason to deny Cenvat credit of tax paid on Rent of godown at Agra/ Farrukhabad, Sugar handling charges at the said godowns & Security services availed at the said godowns - cash disbursement is for procurement of raw material, and has direct nexus with the manufacturing activity & so is the case of insurance of cashier. In the matter of Vehicle Hire charges and insurance of company owned vehicles already there are decisions of the High Courts allowing credit of service tax paid on such service. In the case of charges of gay rope mask, assessee submits that this is services required for their efficient functioning at the place of procurement of raw material and it has got direct nexus in the manufacturing activity - appellants are eligible for the disputed Cenvat credits.
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