2016 (12) TMI 1744 - AT - Central Excise

CENVAT credit - godowns hired at different places - place of removal - Held that - It does not appeal to common sense how CENVAT credit is impermissible when storage of the goods was made in hired godowns. That has direct nexus to the manufacturer to remove congestion in the factory. Therefore such integral connection does not call for denial of the Cenvat credit of the service tax paid on rent paid to avail godown facility - Credit allowed - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal regarding disallowance of Cenvat credit on service tax paid for renting godowns. The Tribunal found a direct nexus between storing final products in hired godowns and the manufacturer's operations, allowing the Cenvat credit.