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2024 (6) TMI 759 - AT - Central ExciseIssues involved: The issues involved in the judgment are the denial of Cenvat Credit on Scientific and Technical Consultancy Services for trading of technology, eligibility for Cenvat Credit on input services, and the settlement of the issue based on previous tribunal decisions. Denial of Cenvat Credit on Scientific and Technical Consultancy Services: The appellant, engaged in manufacturing pharmaceutical products, availed Cenvat Credit on scientific and technical consultancy services for non-taxable services like the sale of technology. The department alleged that the appellant traded technology without providing any output service, leading to the denial of Cenvat Credit. A Show Cause Notice was issued, resulting in the confirmation of the demand for Cenvat Credit, penalty, and interest. The appellant challenged this decision through an appeal. Eligibility for Cenvat Credit on Input Services: The appellant argued that based on previous tribunal decisions, they were entitled to Cenvat Credit on scientific and technical consultancy services as the issue was settled. The appellant's representative highlighted that the same issue had been resolved in the appellant's favor in previous cases, and therefore, the present appeal should also be allowed. Settlement of Issue Based on Previous Tribunal Decisions: The Tribunal examined the denial of Cenvat Credit on scientific and technical consultancy services, emphasizing that the appellant had exported the services on the same day they were received. The Tribunal analyzed the agreements between the appellant and service providers, concluding that the services were used by the appellant through supervision and monitoring during the technology development process. Relying on the previous tribunal decisions, the Tribunal set aside the impugned orders and allowed the appeal, granting the appellant Cenvat Credit on scientific and technical consultancy services. The judgment highlights the appellant's entitlement to Cenvat Credit on scientific and technical consultancy services, based on the utilization of input services and previous tribunal decisions. The Tribunal's analysis focused on the appellant's involvement in supervising and monitoring the technology development process, leading to the conclusion that the services were indeed used, contrary to the revenue's argument. Ultimately, the impugned orders were set aside, and the appeal was allowed in favor of the appellant.
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