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2019 (3) TMI 854 - AT - Central ExciseCENVAT credit - ISD - entire credit distributed to one unit / Hazira Plant - services utilized for the drilling activities undertaken at Mumbai offshore fields - Rule 7 of Cenvat Credit Rules - distribution of credit - The Show cause notices consider the crude oil and natural gas as final products and state that crude oil and natural gas are exempted excisable goods therefore, Cenvat credit of services used at Mumbai Off shore is not admissible. - Held that:- The perusal of the relevant Rule 7 of Cenvat Credit Rules, 2004 shows that word ’sale’ does not appear anywhere in the Rule. In fact the whole Rule is premised on the use of services in or in relation to manufacture of finished products where the invoices are received at a place different from the manufacturing facility for the reason that such services are availed commonly by different units/ manufacturers. The ratio of the decision of Hon'ble High Court of Bombay in the case of OIL AND NATURAL GAS CORPN. LTD. VERSUS CCE, SERVICE TAX AND CUSTOMS [2013 (4) TMI 103 - BOMBAY HIGH COURT] is squarely applicable to the present case, where it was held that Tribunal was in error in coming to the conclusion that the Appellant was dis-entitled to the benefit of Cenvat credit in respect of the input services used in or in relation to the manufacture of dutiable final products on the ground, as the Tribunal held, that crude oil which is subject to a further process of manufacture at the Uran plant for the production of dutiable final products is exempted from central excise duty. Credit allowed - appeal allowed - decided in favor of appellant.
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