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2017 (12) TMI 157 - AT - Central ExciseCENVAT credit - fruit pulp - Whether manufacturer of goods having Nil tariff rate of duty is eligible for Cenvat Credit at all? - Held that: - the Cenvat Credit cannot be denied as the final product fruit pulp is chargeable to Nil rate of duty as per tariff, exported by the appellants - the Hon'ble High Court of Bombay in the case of Sharp Menthol India Ltd. [2011 (4) TMI 27 - BOMBAY HIGH COURT] has held that The assessee was entitled to avail the Cenvat credit of duty paid on menthol used in the manufacture of exempted menthol crystals and utilize the said credit for payment of duty on clearance of peppermint oil either for home consumption or for export - credit allowed. Refund claim - man power recruitment service - security service - refund claims were rejected by the original adjudicating authority relying on Rule 5B of the Cenvat Credit Rules, 2004 read with N/N. 12/2004-CE (NT) dated 03/03/2014 - whether the appellants are providers of service or not in terms of Rule 5B of the Cenvat Credit Rules? - Held that: - It is clear from the notification and Rule 5B that the said rule and notification are intended solely for the service provider providing specific services - The appellant's claim is that by virtue of Section 68 (2), since liability to pay partial service tax has been imposed on them they become service provider is misplaced - The Act differentiates between the service provider and person liable to pay service tax under different circumstances - Section 68 (2) is a special mechanism for shifting part liability to pay service tax from service provider to service recipient but it does not convert in the service recipient into service provider - Rule 5B has no application in the appellant's case. Appeal allowed - decided partly in favor of appellant.
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