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2017 (2) TMI 1459 - AT - Central ExciseUtilisation of CENVAT Credit - allegation that Cenvat credit earned on manufacturing activity for payment of Service Tax liability - SCN did not cite any rule - HELD THAT:- There is no requirement for a person to keep separate Cenvat credit accounts for manufacturing and service activities. Rule 3(1) of the Cenvat Credit Rules provides that a person can avail credit in respect of the manufacturing activity as well as in respect of the activities of providing services. This is a common pool and no different pool for manufacturing and service related activities. Rule 3(4) of the Cenvat Credit Rules prescribes that such credit can be used for payment of excise duty or for Service Tax on any output services - there is no such condition that the Cenvat credit earned under Rule 3(1) of the Cenvat Credit Rules can be used for ‘X’ purposes and not for ‘Y’ purposes. Other allegation is that the appellants are registered separately as manufacturer and service provider - HELD THAT:- There are two distinct different activities. Credit earned by one entity cannot be used by another entity. It is observed that both Central Excise registration and Service Tax registration are taken by same legal entity, therefore, despite two different registrations, a single Cenvat credit account can be maintained. The demand do not sustain - appeal allowed - decided in favor of appellant.
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