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2015 (2) TMI 190 - AT - Service TaxCenvat Credit - Denial of input service credit in the hands of Job worker who is availing the benefit of exemption notification no. 8/2005 ST and 214/86 CE and did not pay Central Excise duty and service tax on the job work goods cleared by them to the principal manufacturer who suffered duty on the final product - Held that:- In this case the appellant is a job worker and the final product which they supplied to the principal manufacturer has suffered duty. Therefore, the issue is to be examined in the scenario whether the final product has suffered duty or not. As per Notification 214/86 the job worker can receive the goods from the principal manufacturer without payment of duty and also procure the inputs on payment of duty and can avail the credit. He is also entitled to clear the goods without payment of duty to the principal manufacturer who cleared the final goods on payment of duty. The same treatment has been given by the Notification 8/2005 (ibid). In these circumstances, as it is an admitted fact that the final products which have been processed by the appellant have suffered duty, therefore, appellants are entitled to take the credit of the input service. - Decided in favour of assessee.
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