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2023 (1) TMI 1135 - AT - Central ExciseDenial of CENVAT Credit - input services - construction service - security service - maintenance and repair service - works contract service - manpower recruitment and supply service - it was contended by central excise authorities that such availment was not permissible under rule 3 of CENVAT Credit Rules, 2004 owing to non-conformity with the definition of input service in rule 2(l) of CENVAT Credit Rules, 2004 - HELD THAT:- From a plain reading of the germane definitions in CENVAT Credit Rules, 2004, it is found that the distinction drawn between input and input service for deploying the expression whether directly or indirectly also appears to have been overlooked by central excise authorities. The relevance of the expression in the latter, by reason of intangibility and solely for manufacturing entities, is crucial enough to be the essence of the test for conformity to the definition. Most services will not be amenable to direct use, and absorption, in the manufacture of goods; neither would these be clearly discernable in the product that emerges. The principle of nexus of service should not, therefore, restrict itself to direct use but should encompass indirect deployment and, hence, should be examined also in relation to the main leg of the definition. The lack of finding in the impugned order on the applicability of the main leg of the definition and its nexus with the final output hinders the exercise of appellate determination. It would be appropriate to have that undertaken to enable which we set aside the impugned order and restore the proceedings before the original authority to take note of the submissions of the appellant herein on the direct/indirect use of the impugned services procured by the appellant and determine nexus or lack thereof. Appeal allowed by way of remand.
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