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2023 (3) TMI 1465 - AT - Central ExciseCENVAT credit of service tax paid on charges collected for treatment by M/s.TPL - Department has denied the credit alleging that the activity of effluent treatment is a post-manufacturing activity and therefore not eligible for credit - HELD THAT:- Undisputedly, the effluent treatment of the waste water (hazardous waste) is necessary in order to manufacture the goods. The appellant cannot continue manufacturing of the goods without taking steps for effluent treatment of the waste. The department has denied the credit alleging that the activity carried out by the appellant is an activity which is after the manufacture of goods. The decision of M/S. MARUTI SUZUKI LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-III [2009 (8) TMI 14 - SUPREME COURT] is with regard to the eligibility of credit availed on inputs and not on input services. It is not possible for the assessee to avail all types of input services within the factory premises. The decision of Maruti Suzuki Ltd. is not applicable to the facts of this case. Moreover, the activity of waste water treatment is part of manufacturing activity and any activity which is directly or indirectly in relation to manufacture would be eligible for credit - the credit has been denied without valid reasons. The appellant is eligible for credit. The impugned order disallowing the credit as well as confirming the demand and imposing penalty is set aside. Appeal allowed.
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