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2009 (10) TMI 412 - AT - Central ExciseCenvat credit on input services while availing value based exemption – SSI unit – exemption under notification no. 8/2003 - the credit has been denied on the ground that under Rule 6 of Cenvat Credit Rules 2004, Cenvat credit of service tax paid on input services cannot be allowed when the finished products are exempted products and attract nil rate of duty. - It is his submission that Notification No. 8/2003-C.E., dated 1-3-2003 specifically provides that Cenvat credit on inputs used in the manufacture of exempted goods is not available and there is no mention of input services in the Notification – Held that: Notification specifically provides for denial of credit of duty paid on inputs, but does not provide for denial of Cenvat credit on input service. It has to be noted at this stage that in respect of capital goods also, the credit is allowed even during the period of exemption to SSI Manufacturers and this is because Notification does not provide for denial of Cenvat credit on capital goods. Therefore, it is obvious that if the intention was to deny the benefit of Cenvat credit of service tax paid on input services to the assessee availing SSI exemption, input services would have been specifically excluded, as in the case of inputs. Since the Exemption Notification does not put such condition, the appellants are eligible for the Cenvat credit of service tax paid on input services.
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