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2018 (7) TMI 157 - AT - Central ExciseCENVAT credit - input services - demurrage charges - it was alleged that appellant availed the cenvat credit of service tax paid for services which were in the nature of penalty and cannot be treated as input service - Held that:- The service provider would charge penalty or demurrage for failure to receive the guranteed quantity for a certain period. On perusal of the agreement, it is clear that the said charges are related to the service provided by the service provider - the service rendered by M/s IMC Ltd. is in respect of manufacturing of excisable goods - denial of credit unjustified. In the present case, the appellant availed MS pipeline facility belonging to M/s IMC Ltd. The service provider paid the tax which cannot be denied and therefore, the availment of cenvat credit by the recipient unit cannot be denied. Appeal allowed - decided in favor of appellant.
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