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2017 (8) TMI 786 - AT - Central ExciseCENVAT credit - packing material - The main allegation in the show cause notice is that the credit is not eligible as it was availed by the assessee under the erstwhile Rule 6 of Service Tax Credit Rules, 2002 and also for the reason that the advertisement and insurance services have no nexus with the output service of clearing and forwarding agent service - Held that: - In a catena of decisions, it has been held that when input services, are related to the business activities of the assessee, are eligible input services - The second allegation that the assessee is not eligible for availing credit is that since the same was availed under the erstwhile Rule 6 of Service Tax Credit Rules, 2002. This is without any basis. Rule 11 of CENVAT Credit Rules, 2004 provides for the transitory provision to avail and utilize the credit which was accumulated prior to coming into existence of the new legislation of CENVAT Credit Rules, 2004. On such score, we find that disallowance of ₹ 39,09,292/- for this reason also is unjustified - The impugned order dropping the demand of ₹ 39,09,292/- is upheld and the order passed by the Commissioner disallowing the credit of ₹ 49,00,192/- is modified to the extent of allowing the credit of ₹ 39,09,242/- and disallowing the balance. Appeal allowed - decided partly in favor of appellant.
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