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2014 (1) TMI 822 - AT - Service TaxDenial of CENVAT Credit - Job worker - Guest house facility - whether CENVAT credit could be taken on security services availed by the appellant for guarding the inputs which they had sent to the premises of the job-worker, where the goods were converted into an intermediate product and sent back to the factory of the appellant - whether CENVAT credit can be taken on security services availed at the guest houses maintained by the appellant near their factory for use of their employees during their visit to the factory for doing work relating to manufacture or other business activities - Held that:- credit of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the benefit of exemption specified in Notification No. 214/86-C.E. be allowed. I find that the orders relied upon by the departmental representative has not examined the express provision under Rule 3 of Cenvat Credit Rules or the recent clarification dated 19-1-2010 issued by C.B.E. & C. in the matter - there is no reason to deny Cenvat credit of security services utilized by the appellant at the premises of the job workers and paid for by the appellant. Guest house facility is that, which can be utilized both for the personnel engaged in the manufacturing process and business process as well for satisfaction of their personal needs. Since the precedent decisions are to the effect that Cenvat credit cannot be allowed for tax paid for services utilized at guest houses - Decided partly in favour of assessee.
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