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2015 (8) TMI 150 - AT - Central ExciseDenial of CENVAT Credit - Input service - activities relating to business - 100% of services covered under Rule 6(5) of the Cenvat Credit Rules 2004 - utilization of common input services - Trading activities - Held that:- Definition of Input service given under Cenvat Credit Rules 2004 is very wide and it covers services used directly or indirectly in or in relation to manufacture of final products. The inclusive part of definition of input service at the material time in 2007-08 allowed credit of services used in any activity relating to business. Regarding cenvat credit pertaining to canteen services no evidence exists on record that any amount has been recovered from the employees of the appellant. The scope of ‘activities relating to business’ is wide for admissibility of cenvat credit at the material time which was correctly allowed by Adjudicating authority. Accordingly, service tax paid on any activity relating to business of manufacturing will be available as Cenvat Credit to the appellant. Commissioner (Appeals) finding for not following the case law of Coca Cola India Pvt Ltd [2009 (8) TMI 50 - BOMBAY HIGH COURT], is not correct because, there is no stay on the operation of that decision and only filling appeal against the decision is not enough for not following the said decision which is also followed in CCE v/s Parth Poly Wooven Pvt. Ltd. - [2011 (4) TMI 975 - GUJARAT HIGH COURT] and many other cases like [2014 (3) TMI 921 - GUJARAT HIGH COURT]- CCE v/s INDUCTOTHERM INDIA P. LTD. Appellant claims that they are entitled to 100% credit in respect of services covered under Rule 6(5) of the Cenvat Credit Rules 2004, but they have also not come out with clarity on the actual services availed by them. Therefore, this factual aspect needs proper verification of the records of the appellant by the original adjudicating authority. The original adjudicating authority is directed to verify and examine whether such Cenvat Credit is covered under Rule 6(5) for the above 17 services and that these services are not used exclusively in or in relation to the manufacture of exempted goods or providing exempted services. Needless to mention that appellant will be granted an opportunity of personal hearing to produce necessary documents to prove eligibility to credit claimed by them following principles of natural justice. - impugned Order demanding duty with equal penalty deserves to be modified - Decided in favour of assessee.
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