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2022 (10) TMI 1077 - AT - Central ExciseCENVAT Credit - inputs - capital goods - input services - Consulting Engineering Services - Supply of Tangible Goods Services - period from October 2011 to March 2012 - appeal rejected on the ground that the CENVAT Credit which has been utilized for payment of Service Tax on output service has been availed as a manufacturer and should have been utilized for payment of duties related to manufacture of excisable goods and not for payment of Service Tax payable on output services provided by the Appellant. HELD THAT:- A manufacturer of excisable goods can take credit of CENVAT paid on input services and there is no such requirement for one to one co-relation and there is no bar on the utilization of CENVAT credit availed on input services for payment of tax on excisable goods so manufactured and cleared. This issue is already settled in favour of the Appellant in various cases cited by the Appellant. Although the cases referred to are not identical in terms of the factual position, however, they decide the general principles that in respect of utilization of credit there is no requirement of one to one correlation and cross utilisation of credit is permissible. C.B.E. & C. vide Letter F. No. 381/23/2010/862, dated 30-3-2010, clarified that Cenvat credit on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of Excise duty and/or Service Tax. Credit accumulated by the service provider or manufacturer on the input services availed as well as inputs is available for payment of Excise duty or Service Tax. The impugned orders cannot be sustained and are therefore set aside - Appeal allowed - decided in favor of appellant.
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