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TMI Blog2009 (12) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... axable output service - the argument of the Ld. Advocate that such credit is available in respect of input service used in relation to traded goods is prima facie not acceptable as neither the existing Rules provide for it nor the Government has power to make such Rules under Section 37(2) of the Central Excise Act, 1944 and Section 94 of the Finance Act, 1994 - Decided against the assessee by way of direction to deposit Rs. 15 Lakhs - E/510/2009 - 1021/2009 - Dated:- 7-12-2009 - Ms. Jyoti Balasundaram, Dr. Chittaranjan Satapathy, JJ. REPRESENTED BY : Shri C. Saravanan, Advocate, for the Appellant. Ms. Indira Sisupal, JDR, for the Respondent. [Order per : Chittaranjan Satapathy, Member (T)]. Heard both sides. Shri C. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that for the same reason the service used in respect of traded goods does not fall within the definition of input service under Rule 2(l) of the Cenvat Credit Rules, 2004 nor, Rule 3 allows credit of the input duty/tax in such cases. She also refers to Section 37(2) of the Central Excise Act, 1944, which has no provision for allowing such credit. 4. After hearing both sides and perusal of case records, we find that Rule 3 of the Cenvat Credit Rules, 2004, allows credit of excise duty paid on any inputs and service tax paid on any input service received by the manufacturer of final products or by the provider of out put service. Input and input service have been defined in Rule 2(k) and (l) of the Cenvat Credit Rules, 2004, to mean goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994 to make Rules to provide for credit in respect of goods and services used for providing taxable service. There is no power with the Government to make rules to provide for credit in respect of service tax paid on input services which is used neither in or in relation to manufacture of excisable goods nor for providing taxable output service. Hence, the argument of the Ld. Advocate that such credit is available in respect of input service used in relation to traded goods is prima facie not acceptable as neither the existing Rules provide for it nor the Government has power to make such Rules under Section 37(2) of the Central Excise Act, 1944 and Section 94 of the Finance Act, 1994. 6. On a query from the Bench, the Ld. Advocate state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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