2016 (11) TMI 1560 - AT - Central Excise

CENVAT credit - input services - storage of sugar in its godown - denial of credit on account of nexus - Held that - It does not appeal to commonsense as to how the goods shall be stored without godown facility - The storage of the goods having direct nexus to the manufacture, disallowance of Cenvat credit on the rent paid for the godown is inconceivable - credit allowed - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal regarding Cenvat credit on rent paid for godown storage of goods, stating that the service tax paid on the rent is admissible as input service due to its direct nexus to manufacturing. The appeals were allowed.