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TMI Blog2010 (12) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... cts cannot sit in judgement over the taxability of the service or excisability of the inputs, which function belongs to the departmental authorities having jurisdiction over the service provider/input manufacturer. This settled position of law is squarely applicable to the present case. - Cenvat Credit allowed - E/840 & 841/09 - - - Dated:- 21-12-2010 - Mr. P.G. Chacko, Shri.Bharat Raichandani, Advocate for appellant Shri.Manish Mohan, SDR, for respondent 1. In these appeals filed by the assessee, the short question to be considered is whether they were entitled to avail CENVAT credit of the service tax paid on certification of pollution level during the period of dispute. The appellant is engaged in the manufacture of ceme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the dispute, the original authority confirmed the demand of duty against the appellant and imposed penalties. The appellate authority upheld the orders of adjudication. 2. In the present appeals, the learned Counsel for the appellant has relied on case law in support of his argument that it was not open to the lower authorities to examine the taxability of the service, which function belonged to domain of the service tax authorities at the service-providers end. Some of the decisions cited by the Counsel are the following:- i) CCE CC Vs. Laxmi Metal Pressing Works Pvt Ltd., .2010 (18) STR 149 (T) ii) Multi Organics Pvt Ltd., Vs. CCE 2010 (253) ELT 804 (Tri.) iii) Spic (HCD) Ltd., Vs. CCE 2010 (201) ELT 386 (Tri-Chennai) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down under the service tax rules. Such payments were accepted by the service tax authorities concerned. According to case law, the appellant was entitled to take credit of the service tax so paid by the service providers. Therefore, the appeals are liable to be allowed. 4. The learned SDR submits that the basic issue to be considered in this case is whether certification of pollution level in the appellant s factory premises is an input service under Rule 2 (l) of the CENVAT credit Rules, 2004 for the appellant to claim credit of the service tax paid on such services. It is submitted that, there being no direct nexus between the certification of pollution level and the manufacture of cement, such certification would not qualify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases is that, where service tax or Central Excise duty was paid on any service or any excisable goods, as the case may be, by the service provider or the manufacturer of the goods, as the case may be, CENVAT credit thereof would be admissible to the service recipient or, as the case may be, the manufacturer of the final product who has used the aforesaid goods as inputs in the manufacture of final products. The departmental authorities having jurisdiction over the service recipient/manufacturer of final products cannot sit in judgement over the taxability of the service or excisability of the inputs, which function belongs to the departmental authorities having jurisdiction over the service provider/input manufacturer. This settled positi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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