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2014 (10) TMI 206 - AT - Service TaxDenial of CENVAT Credit - cross utlisation of credit for the payment of service tax whereas availed in relation to manufacturing activity - input services - Renting of Immovable Property Service - Held that:- It is a basic principle of Cenvat credit that there has to be a nexus between the input and input service and the output and output service. Only in respect of input and input service which go into the manufacture of output or which are used in or in relation to rendering of output service, credit can be taken. This is what Rule 3 of the CENVAT Credit Rules, 2004 stipulates. If there is no nexus between the input and input service and the output or output service, credit cannot be taken or utilised. In the present case, it is not in dispute that the credit was earned in respect of input/input service which were used in or in relation to the manufacturing activity of the appellant. The same has no nexus with the rendering of the output service of renting of immovable property in Mumbai. Therefore, the utilisation of the Cenvat credit for payment of service tax on renting of immovable property at Mumbai is not clearly permissible in law. Therefore, the appellant has not made out a prima facie case for waiver of dues - Partial stay granted.
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