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2016 (9) TMI 1239 - AT - Service TaxCenvat credit - availed irregularly - bank charges, AMC and pest control charges - nexus with the manufacturing activity of the appellant - Held that - by following the decisions of tribunal in the case of MPI Machines Ltd. vs. CCE, Indore 2014 (1) TMI 718 - CESTAT NEW DELHI and in the case of Hindustan Coca-Cola Beverages (P) Ltd. vs. CCE, Hyderabad 2009 (5) TMI 379 - CESTAT, BANGALORE , I am of the opinion that the impugned order is not sustainable in law and the learned Commissioner (A) has wrongly declined the CENVAT credit on the said services by holding that there is no nexus with the manufacturing activity of the appellant. I hold that the appellant is entitled to CENVAT credit as there is a nexus between the disputed services and the business of the appellant. - Decided in favour of appellant with consequential relief
Issues: Denial of CENVAT credit on bank charges, AMC for service of attendance recording machine, and pest control services.
Analysis: The appeal was filed against the Commissioner (A)'s order denying CENVAT credit on certain services like bank charges, AMC, and pest control services. The appellant, engaged in manufacturing graphite products, argued that these services are eligible for credit as per Rule 2(l) of CENVAT Credit Rules, 2004. The appellant contended that various court decisions have interpreted input services broadly, including those indirectly related to the business. The appellant cited cases like MPI Machines Ltd. vs. CCE, Indore and Hindustan Coca-Cola Beverages (P) Ltd. vs. CCE, Hyderabad to support their argument. The learned AR supported the findings of the impugned order, maintaining the denial of CENVAT credit on the mentioned services. After hearing both parties and considering the arguments along with the cited decisions, the Judicial Member held that the impugned order was legally unsustainable. The Commissioner (A) erred in denying the CENVAT credit by stating there was no nexus between the disputed services and the manufacturing activity of the appellant. The Judicial Member found a clear connection between the services and the appellant's business, thus allowing the appeal and setting aside the impugned order. The decision was pronounced in open court on 21.09.2016, providing consequential relief to the appellant.
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