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2015 (1) TMI 1147 - AT - Service TaxDenial of Input service credit - technical know-how fees and travel agent service - Held that:- the service tax paid on services provided by travel agent for travelling of company officials is eligible for CENVAT credit and even the Commissioner (Appeals) has conceded as much. However, he has not given any reason as to why the impugned credit was not admissible when the appellants clearly stated that the services were for the official travels of the officials for the purposes mentioned earlier. Thus, I do not find the denial of the said credit sustainable. - Following decision of Vidyut Metallics Pvt. Ltd. Vs. CCE [2012 (11) TMI 376 - CESTAT, MUMBAI]. Commissioner (Appeals) has denied the credit on the ground that the said amount of service tax was in relation to the technical know-how for production of two products namely Candisartan and Irbesartan and has been denied on the ground that the said products have not been manufactured by the appellants - observation of the Commissioner (Appeals) does not flow from any legal requirement. The technical knowhow once obtained begins to be utilised for the purpose of manufacture of products for which it was obtained as such technical knowhow is relevant/required right from the point of setting up the necessary wherewithals required for manufacturing the product. Further as per Rule 4(7) of Cenvat Credit Rules, 2004, CENVAT credit in respect of input services becomes available on or after the date on which payment is made for the value of the input service. Commissioner (Appeals) has stated that they should have been initiated the production of their final goods utilising the said technical knowhow within a reasonable period of time, but has failed to elaborate what in his view would be a reasonable period of time or whether there is any legal yardstick to determine such reasonable period. - Commissioner (Appeals) has attempted to distinguish the judgement [2009 (8) TMI 172 - CESTAT, AHMEDABAD] on the ground that in that case the appellant had initiated the trial production. But as is evident, in that case also no duty was paid on the final product as it never reached the market. The ratio of the CESTAT judgement in the case of Cadila Healthcare Ltd. (supra) is clearly supportive of the appellants claim. Thus, I do not find sufficient reasons for denial of the impugned credits - Following decision of Cadila Health Care Ltd. Vs. CCE [2009 (8) TMI 172 - CESTAT, AHMEDABAD] - Decided in favour of assessee.
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