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TMI Blog2015 (12) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... usively producing the goods only for Unit-I. Without processing at Unit-II and Unit-III, final products cannot be manufactured at Unit-I. Therefore, renting of immovable property service is having direct nexus in the manufacture of goods at Unit-I. Rule 2 (1) of CCR, 2004, clearly mentions that service utilized in or in relation to manufacture of final products is eligible as input services. Hence, the benefit of cenvat credit on input services cannot be denied to the appellants. In view of the foregoing, I find that the appellant has made out the case in their favour and the impugned order is liable to be set aside - Decided in favour of assessee. - Appeal No. E/41887/2014 - FINAL ORDER No.: 41701 / 2015 - Dated:- 16-12-2015 - Shri P.K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Counsel for the appellants, Ms. D. Naveena, Advocate, reiterated the grounds of appeal and submitted that the appellant company is 100% EOU and they were facing shortage of space in their existing Unit and therefore, they rented out two new premises for Unit-II and Unit-III and declared all three units as location of factory in their Green Card No. 1870/MEPZ dated 13.03.2009, valid upto 12.03.2014, issued by the Jt. Development Commissioner, MEPZ, Chennai and also obtained in-bond manufacturing sanction order and license for Private Bonded Warehouse by the Dy. Commissioner of C. Excise dated 14.11.2005 and 08.04.2008. She submits that materials are procured at Unit-I and removed to Unit-II and Unit-III for processing under Annexure-II, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the appellants are 100% EOU and are manufacturers of Ornamental Trimmings, Tassels, Tie backs etc. They are also having two more units viz., Unit-II and Unit-III. The appellants have taken credit of service tax paid under Renting of Immovable Property services on rental charges pertaining to the premises of Unit-II and Unit-III. Separate Central Excise registration has been obtained for the premises. I also find that the appellants have incorporated all the three units as location of factory in their Green Card No. 1870/MEPZ dated 13.03.2009. The raw materials are procured at Unit-I and removed to both the units for processing under Annexure-II, a prescribed document for removal of goods from 100% EOU. The goods processed at Unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e being undertaken at Unit-I. 6. Unit I, Unit-II and Unit-III share same legal entity, production processes and interlinked. Raw materials have been sent to Unit-II and Unit-III by Unit-I but for production of intermediate products and the intermediate products are received back by Unit-I for the manufacture of final products. Unit-II and Unit-III are exclusively producing the goods only for Unit-I. Without processing at Unit-II and Unit-III, final products cannot be manufactured at Unit-I. Therefore, renting of immovable property service is having direct nexus in the manufacture of goods at Unit-I. Rule 2 (1) of CCR, 2004, clearly mentions that service utilized in or in relation to manufacture of final products is eligible as input serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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