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TMI Blog2014 (7) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... x on the output services as stipulated in the sub-rule (4) of Rule 3 of CCR 2004. The restrictions on utilization of cenvat credit stipulated in the CCR relates only for specific type of duties i.e. education cess on excisable goods or payment of educational cess on output services. There is no restriction for utilization of common input credit availed on the inputs and also on input services for payment of excise duty or service tax - there is no infirmity in the order of Commissioner (Appeals) in holding that utilization of input cenvat credit availed by the respondents for payment of service tax on the output service of Business Auxiliary Services rendered by them - Decided against Revenue. - Appeal No.ST/358/2009 - FINAL ORDER No.40406 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envat credit alleged to have been lapsed and wrongly availed by respondent. 3. On adjudication, the adjudicating authority confirmed the demand of ₹ 20,44,436 + ₹ 58,789/- along with interest and also imposed penalty. Aggrieved by this order, the respondent filed appeal before Commissioner (Appeals) and he allowed the appeal and set aside the adjudicating authoritys order. Hence Revenue filed the present appeal against the impugned order only on the limited grounds that the lower appellate authority erred in allowing credit availed on inputs received for the manufacture of excisable goods, for payment of service tax on the services rendered towards BAS for as the said inputs were not used for providing the output service. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ology Engineering Indus. Ltd. - 2011 (23) S.T.R. 265 (Tri.-Chennai) (ii) S.S Engieers Vs CCE Pune 2013-TIOL-1512- CESTAT-MUM. He submits that they are eligible to utilize the credit availed on the inputs for manufacture of excisable goods towards payment of service tax on output service as there is no one to one correlation. 6. I have carefully considered the submissions from both sides and gone through the records. The main contention of the Revenue is only on the utilization of cenvat credit by the respondents earned on the inputs received for manufacture of excisable goods towards payment of service tax for Business Auxiliary Service , Prima facie there is no dispute on the admissibility of Cenvat credit availed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with by the Tribunal in the case of Lakshmi Technology Engineering Indus Ltd. (supra) and in the case of SS Engineers (supra). The Tribunal's order in the case of SS Engineers Vs. CCE, Pune-I (supra), is reproduced herein below:- 5. We have considered the rival submissions. We have gone through the CENVAT Credit Rules. We find that Rule 2 defines input, input services, capital goods etc. Before availing CENVAT credit, a manufacturer or service provider has to be satisfy the definitions provided under the said Rules. Rule 3(1) of the CENVAT Credit Rules states that a manufacturer or producer of final products or provider of taxable service shall be allowed to take credit of various duties specified in various sub-clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refully considered the submissions from both sides and perused the records. Rule 3(1) of the CENVAT Credit Rules permits credit to a manufacturer of final product or a service provider of taxable service. If a person manufactures only excisable goods, he is entitled to take credit of not only excise duties paid on capital goods and inputs but also additional duty of customs paid under the Customs Tariff Act in respect of imported inputs and capital goods and also service tax paid on the input services utilized in or in relation to the manufacture of the excisable goods. In other words, a manufacturer of excisable goods is entitled to use the credit from a common pool to which different categories of specified excise duties, customs duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the common pool for different purposes and there is no restriction placed to the effect that credit accounts should be maintained for use for manufacture of excisable goods and for use for providing services. Therefore, the view taken by the Commissioner (Appeals) cannot be faulted. The clarification sought to be relied upon by the Department that input credit service taken only if the output is a service liable to service tax has no relevance to the present case. Undisputedly, the respondents have registered themselves as service provider of service of renting of immovable property and paying service tax as provider of output service and therefore the utilization of credit taken by them is valid. 7. In addition to above, we have also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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