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2015 (8) TMI 58 - AT - Central ExciseDenial of CENVAT Credit - Appellants fabricated a Dry Dock for manufacturing ship and repair service - Credit on input services, input and capital goods used for fabrication of the Dry Dock, amongst others - Held that:- CENVAT Credit availed on input service, input and capital goods for setting up Dry Dock would be allowed for providing output service namely repair/refit service. This is also covered in the inclusive part of the definition of ‘input service’. Hence, the finding of the Adjudicating authority, is that the Appellant is exclusively engaged in the manufacture of exempted final product ‘Ships’ and CENVAT Credit on input, capital goods is inadmissible, cannot be sustainable. Nexus between the input/input services and export goods/services - Held that:- it must be borne in mind that the purpose is to refund the credit that has already taken by them. There cannot be different yardsticks for establishing the nexus between taking of the credit and for refund of credit. Even if different phrases are used under different rules of CENVAT Credit Rules, they have to be read in a harmonious manner. Cross utilisation of credit of input and input service - input service credit was denied mainly on the basis that the input service credit availed on the input services was shown in ER-1 return instead of ST-3 returns. - Held that:- The restriction on utilisation of CENVAT Credit stipulated relates only for specific type of duties i.e. education cess on excisable goods or payment of education cess on output service. There is no restriction for utilisation of common input credit availed on the inputs and also on input service for payment of excise duty or service tax. Hence, we do not find any reason to deny the input service credit on the ground that it was shown in the ER-1 return. - creidt allowed. Use of capital goods in immovable property - Held that:- the Appellant is unable to render the repair/refit service without the crane in Dry Dock and which can be treated as capital goods. The case law relied upon by the learned Authorised Representative is in context of excisability of goods, and the Tribunal already considered in earlier decision. - credit allowed. Denial of cenvat credit on the basis of document issued by the ISD (Input Service Distributor). - Held that:- As per CENVAT Credit Rules, the Appellants are eligible to avail the credit on the invoices issued by the ISD. There is no reason to deny the credit on the ground that the address of the ISD was not mentioned in the LOP. - denial of CENVAT Credit alongwith interest and penalties cannot be sustained. Accordingly, the impugned order is set aside - Decided in favour of assessee.
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