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2014 (7) TMI 28 - AT - Central ExciseCENVAT Credit - input service - service tax on "dredging services" - construction of jetty on the water front - nexus between the dredging services and the manufacturing activities - Held that:- Dredging is undertaken in the navigation channel which leads to the jetty of the appellant. The channel is not the private property of the appellant but belongs to the Maharashtra Maritime Board and the channel is also used not only by the appellant but also by several others and therefore, it cannot be said that the benefit of dredging of the channel accrues only to the appellant and not to others and such dredging is entirely in relation to the manufacturing activity undertaken by the appellant. Various case laws stated by the appellant does not help the appellant's case for the reason that the facts involved therein were different and distinguishable. In an identical matter relating to dredging services in respect of Sanghi Industries Ltd., Vs. CCE, Rajkot - [2008 (8) TMI 277 - CESTAT AHMEDABAD], a co-ordinate bench at Ahmedabad took the view that the issue is contentious and accordingly, pre-deposit of about Rs.10 lakhs against the demand of Rs.55 lakhs was ordered. Therefore, it cannot be said that the issue is settled in favour of the appellant and against the Revenue. However, there is a merit in the contention of the appellant that they had disclosed the fact of availing Cenvat Credit on dredging services as early as in October 2006 and therefore, invoking of extended period of time is not justified - stay granted partly.
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