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2017 (11) TMI 26 - AT - Central ExciseCENVAT credit - whether Cenvat credit availed on manpower and business support service in terms of Rule 2(l) and Rule 3(l) of Cenvat Credit Rules, 2004 is admissible or otherwise? Held that: - the appellants are being charged by the service provider towards wages of the staff/ members of the society. As the invoices dated 30.6.2013 being invoice number ‘7’ has been raised on the appellant by ‘Sun Growth Manpower Service Private Ltd.’ wherein they have raised the bill for staff service charges for the month of April, 2012 to June, 2013. To such staff charges and raised the bills which have been paid admittedly by the appellants. From the annexure to the bill, I find that it is with respect to various persons named in annexure and it is mentioned that they have been paid according to number of days of their work. The bill admittedly pertains to man power (for the wages) incurred by the appellant. Further, it is admitted fact that the appellant is engaged in the manufacture of biris which are hand rolled. As per the practice in the said industry, the workers collect the raw material from factory and roll biris at their homes and thereafter semi-finished biris are given back to the manufacturer for further processing and thereafter for packing and selling. I find that only reason given in the impugned order for disallowance of cenvat credit is that such services or input services have not been provided in the factory premises which is registered premises but outside the factory premises and as such, held to be not qualified for cenvat credit as input service. The appellant have received the ‘input service’ in question, in manufacture of final products and clearance of the same - appeal allowed - decided in favor of appellant.
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