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2018 (12) TMI 774 - AT - Central ExciseCENVAT Credit - input services - appellant’s claim is that having included expenses for the cost of production, they are entitled to avail Cenvat Credit - Held that:- Hon’ble High Courts and the Tribunal in various decisions have specifically held that any expenditure incurred by an assessee, if it forms part of the price of the final product, on which Excise Duty is paid, Cenvat Credit must be allowed on the said Service Tax, if the manufacturer can demonstrate that the said expenses are in relation to the manufacture of final product. The Central Excise Duty paid by the appellant on their finished goods is on ad-velorom which has been arrived at after considering all the expenses that had gone into manufacturing of the finished goods. In so far as the present facts of the case is concerned, it is not in dispute that the credit of Service Tax has been availed on services such as Banking and other Financial Service, Courier Service, General Insurance Service, Group Health Insurance Service, etc. which were received and used by the assessee for the purpose of manufacture of the final product and these cost formed part of the excisable value on which Excise Duty was discharged. Service availed at the club premises - Held that:- The maintenance and repair service of various civil and electrical work, carpenter work has been availed at the school, colony and the club maintained by the appellant for its employees. However, the Cenvat Credit of Service Tax Paid on service availed at the club premises cannot be allowed - credit not allowed. The period involved is prior to 01/04/2011, when the definition of input service during the relevant period had wide ambit as it included the words “activities related to business” - the respondent-assessee is eligible for availing credit of Service Tax paid on the Services availed for the purposes of its business activities except the services availed in respect of the club premises. Appeal allowed in part.
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