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2016 (5) TMI 89 - AT - Service TaxAdmissibility of Cenvat credit - Service tax paid in respect of various service provided in relation to the maintenance of health of factory workers - Held that:- employees were working in a situation calling for medical necessity and safety, controlling of pollution and health hazards. Law need not necessarily codify each and every item as input used in or in relation to manufacture. The basic principle being use of input "in or in relation to manufacture”, such test is to be applied to consider allowance of CENVAT credit of the service tax paid on the input utilized and having relevance to the output manufactured. The present case is within such parameter of law for which the appellant deserves consideration. Therefore the service tax paid in respect of health care service provided to the factory workers shall be admissible as CENVAT credit. CENVAT credit claimed on guest house has no relevance to output service so the appellant shall not get any CENVAT credit of service tax if any on such count. Imposition of penalty - Held that:- as the appellant have succeeded on merits, there shall be no penlaty on health service. So far as guest house maintenance service is concerned, there appears no deliberate intention of appellant to cause any evasion. Therefore, penalty on such issue is also waived. - Decided partly in favour of appellant.
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