TMI Blog2014 (1) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... t of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the benefit of exemption specified in Notification No. 214/86-C.E. be allowed. I find that the orders relied upon by the departmental representative has not examined the express provision under Rule 3 of Cenvat Credit Rules or the recent clarification dated 19-1-2010 issued by C.B.E. & C. in the matter - there is no reason to deny Cenvat credit of security services utilized by the appellant at the premises of the job workers and paid for by the appellant. Guest house facility is that, which can be utilized both for the personnel engaged in the manufacturing process and business process as well for satisfaction of their personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workers. The said rule is reproduced below :- Rule 3 of the CENVAT Credit Rules, 2004, reads as follows :- Rule 3 - CENVAT Credit. - (1) a manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit of (i) The duty of excise specified in the Second Schedule .. ......... ......... (ix) the service tax leviable under Section 66 of the Finance Act; ......... ......... paid on (i) Any input or capital goods......... (ii) Any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input or input service, as the case ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 83 (Tri.-Bang.) which held that CENVAT credit of security services at job-workers premises cannot be taken. 5. The learned consultant submits the clarification issued by C.B.E. C. vide Circular No. 120/1/2010-S.T., dated 19-1-2010 in the context of refund of CENVAT credit taken on services used in relation to export of goods. He relies particularly on the contents of para 2(a) and para 3.1, which are reproduced below :- 2. It has been represented.................. (a) The major reason causing delay in granting refunds as well as rejecting the claims is that as per the wordings of the notification, refund is permitted of duties/taxes paid only on such inputs/input services which are either used in the manufacture of export g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Cenvat Credit Rules, 2004, includes within its ambit all services used in or in relation to the manufacture of final products and includes services used directly or indirectly . Similarly Rule 2(1)(i) of Cenvat Credit Rules also gives wide scope to the input services for provider of output services by including in its ambit services used.... for providing an output service . Similar is the case for inputs. 6. The learned consultant submits that it is very obvious from the statutory provision under Rule 3 of the Cenvat Credit Rules as well as the circular issued by C.B.E. C. that it is only proper that Cenvat credit of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of job worker cannot have any nexus with the manufacturing activity of the appellant. He also points out that the Tribunal has already decided in the case of Godrej Sara Lee Ltd. (supra) and Zenith Machine Tools Pvt. Ltd. (supra) that Cenvat credit cannot be allowed for security services availed at the premises of the job worker. The learned A.R. also relies on the decision of the Tribunal in the case of Commissioner of Central Excise, Tirunelveli v. M/s. Tuticorin Alkali Chemicals and Fertilisers Ltd. - Final Order No. 311-312/11, dated 8-2-2011 [2011 (23) S.T.R. 372 (Tri.)] in Appeal No. S.T./525, 526/2010, where CENVAT credit was denied for security services arranged at the saltpan of the appellant in that case. He points out that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e laid down by the Mumbai Bench of the Tribunal in the case of Maharashtra Seamless Ltd. v. Commissioner of Central Excise, Raigad and I hold that there is no reason to deny Cenvat credit of security services utilized by the appellant at the premises of the job workers and paid for by the appellant. 11. In the case of security services at the guest houses, there can be some dispute because of the very nature of the facility of a guest house. This facility, which can be utilized both for the personnel engaged in the manufacturing process and business process as well for satisfaction of their personal needs. Since the precedent decisions are to the effect that Cenvat credit cannot be allowed for tax paid for services utilized at guest house ..... X X X X Extracts X X X X X X X X Extracts X X X X
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