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2016 (3) TMI 1041 - CESTAT NEW DELHI

2016 (3) TMI 1041 - CESTAT NEW DELHI - 2016 (43) S.T.R. 299 (Tri. - Del.) - Admissibility of Cenvat credit on industrial construction service as the said service had no nexus with manufacture and clearance of excisable goods - Held that:- It has been admitted that the said input service is used for providing output services. Therefore, the objection is on utilization of such credit as available on input service for payment of Central Excise duty on industrial furniture. Thus find the reasoning b .....

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tput services or Excise Duty on final products cannot be paid using Cenvat credit availed on input services. Hence, the order of the lower Authority disallowing the Cenvat credit on input service is not legally sustainable. It is seen that the impugned order (para 11) examines the scope of 'input service'. The learned Commissioner (Appeals) observed that credit of service tax on input service is admissible only on those services which have connection or nexus with the manufacture and clearance o .....

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ur of assessee - Excise Appeal No. 52126/2014(SM) - Final Order No. A/50098/2016-SM(BR) - Dated:- 20-1-2016 - B. Ravichandran, Member (T) For the Appellant : Shri Bipin Garg, Adv. For the Respondent : Shri M R Sharma, AR, (DR) ORDER Per B. Ravichandran This is an appeal against order dated 19/12/2013 of Commissioner (Appeals-II), Jaipur. The appellants are engaged in the manufacture of industrial furniture liable to Central Excise Duty. They are also engaged in providing various taxable services .....

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/2010 and resulted in original order dated 16/2/12. The Original Authority disallowed a credit of ₹ 10,55,318/- and imposed equal penalty on the appellants. On appeal, the Commissioner (Appeals) vide his impugned order upheld the original order and rejected the appeal. Aggrieved by this, the present appeal is preferred by the appellant. 2. The learned Counsel for the appellant submitted (i) the appellants are manufacturing furniture at their factory and the said furniture are required to b .....

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redit is legally available, Rule 3 (4) of Cenvat Credit Rules, 2004 allows utilization of such credit either for payment of service tax or excise duty. There is no requirement that credit taken on input services with reference to output services cannot be utilized for payment of Central Excise duty, if the manufacturer and the service provider is one and the same ; (c) the lower authorities have completely misapplied the facts to arrive at the erroneous conclusion. The findings in para 11 of the .....

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oceedings before the lower Authorities. The allegation that credit taken on input services which was used for providing output service cannot be utilized for payment of Central Excise duty is unsustainable in terms of the provisions of Cenvat Credit Rules, 2004. The Rules do not provide for any one to one co-relation between credit legally availed and its utilization. 3. The learned AR reiterated the findings of the lower Authorities and submitted that the credit on commercial construction servi .....

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s it is clear that the credit on commercial construction service is not sought to be denied on the ground that such credit is not available in terms of Cenvat Credit Rules, 2004. In fact, it has been admitted that the said input service is used for providing output services. Therefore, the objection is on utilization of such credit as available on input service for payment of Central Excise duty on industrial furniture. I find the reasoning by the lower Authorities is devoid of any legal merit. .....

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