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2016 (5) TMI 271 - AT - Central ExciseCenvat Credit - Procurement of molasses - Availed Cenvat credit on the duty paid on inputs and capital goods and service tax paid on input services - procured inputs for their distillery unit, being molasses, the main raw material - as per agreement service providers were appointed for performing liason works for the appellant to get allotment of molasses from the office of the Excise Commissioner and Controller of Molasses, Allahabad. Held that:- as molasses are under the strict control of the State Excise Authority, the appellant have rightly incurred expenses for procurement of the same for their distillery unit, so as to manufacture the taxable output being denatured spirit/alcohol. There is no dispute that the assessee have not received the services and paid the service tax on the said services. Further, I hold that expenses incurred by the appellant for procurement of inputs, is eligible input service as defined in Rule 2(l)(ii) of CCR, 2004. Accordingly, it is found that the ld. Commissioner (Appeals) have erred in observing that the service provider have only obtained the permit to procure molasses but not the molasses which is the actual raw material. Accordingly, the impugned order is set aside. - Decided in favour of appellant with consequential benefit
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