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TMI Blog2012 (8) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... , Dy. Commissioner (A.R.) for the respondent The appeal and stay application are directed against the of Order-in-Appeal No: PKS/406/BEL/2010 dated 27/08/2010 passed by the Commissioner of Central Excise (Appeals), Mumbai Zone II. 2. The facts relevant for this case are as follows: 2.1. The appellant M/s. YG1 Industries (India) Pvt. Ltd. are manufacturers of drills/tools falling under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... npower supply services totaling to Rs. 1,70,951/-. Hence the appellant is before me. 3. The learned advocate appearing for the appellant makes the following submissions: 3.1. As regards the job-work charges for grooving on which service tax has been paid, the only ground for disallowing CENVAT credit is that the service provider was eligible for exemption under Notification No. 8/2005 (ST) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that once service tax has been paid by the service provider the authorities at the service recipient s end cannot dispute the assessment and say that the service provider should have availed exemption and not discharged duty liability and on that ground CENVAT credit cannot be disallowed. With respect to the manpower supply service, the learned advocate has filed an affidavit wherein the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for exemption and was not required to pay duty at all should not be and cannot be a consideration for the jurisdictional officers at the appellant s end, who is only a service recipient. Once the service tax has been paid and service has been used in or in relation to the manufacture of the final products of the appellant, the appellant is rightly entitled to avail CENVAT credit. In the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and, therefore, it will be appropriate to remand this matter back to the original adjudicating authority to consider the claim of the appellant in this regard and on satisfaction of the same, allow the credit in respect of the manpower supply service. 7. In view of the above findings, I set aside the impugned order and remand the case back to the adjudicating authority for consideration afre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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