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2014 (12) TMI 1139 - AT - Service TaxDenial of CENVAT Credit - Manpower supply service - cleaning of the yard within the factory - weighment of sugar cane - cane area survey and sugar can development - Held that:- As regards cleaning of the yard within the factory, as per the provisions of the factories act provision of Section 11 of the Factories Act it is the responsibility of a manufacturer to keep the factory premises neat and clean, therefore, the cleaning of the factory has to be treated as activity in or in relation to manufacture of the final product. Therefore, the Cenvat credit in respect of this activity would be admissible. - As regards the weighment of sugar cane and its unloading at the factory, this activity has to be treated as activity in relation to manufacture of sugar and molasses. Therefore, I hold that Cenvat credit would be admissible in respect of this activity also and the same has been wrongly denied. As regards the cane area survey and sugar can development by educating the farmers and by other means, the purpose of this activity is to ensure supply of good quality sugar cane, which is a must for any sugar manufacturing business. In view of this, this activity has to be treated as having nexus with manufacturing business of the appellant - question of eligibility for Cenvat credit of the activities of sugar cane area survey and sugar cane development has to be seen on the basis as to whether these activities have nexus with the business of manufacture of sugar. In my view, while these activities may not have nexus with manufacture of sugar, these activities certainly have nexus with the business of manufacture of sugar, as the supply of good quality sugar cane with good sugar recovery is a must for the business of manufacture of sugar. Therefore, I hold that the Cenvat credit in respect of these activities would be admissible. Any expenditure incurred by a manufacturer is deemed to be included in the price charged by him from his customers and therefore the manufacture is not required to prove that the expenses incurred by him on various inputs and input services used in the manufacture of the final product has been included in the price charged by him. - the impugned order is not sustainable - Decided in favour of assessee.
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