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TMI Blog2024 (2) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... ous chemicals viz., Oxygen, Nitrogen Argon, etc., in liquid state in bulk containers from various suppliers. The same was cleared after refilling in the tankers / cylinders on payment of excise duty. The appellant had availed CENVAT Credit of duty paid on the inputs and Service Tax paid of input services as per the CENVAT Credit Rules, 2004. The CENVAT Credit so availed was utilised towards the payment of excise duty on clearance of such refilled drums-tankers. The Department was of the view that the refilling of gases from bulk containers to retail containers and conversion from liquid state to gaseous state, does not amount to manufacture. It was also noticed by the Department that therefore the credit availed on inputs and input services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input ought not to have confirmed the demand in regard to the credit on input services. The input services used are in relation to the manufacturing activity. The main services availed by the appellant was the inward transportation of inputs and outward transportation of finished products. The same were declared by the appellant in their ER-1 returns. Further, the Department has raised the demand only on the basis of the verification of the accounts of the assessee which itself would show that the appellant had disclosed the entire details of the credit in their account. It is thus very much clear that the services were availed in relation to the manufacturing activity. 2.3 Even though, the Show Cause Notice does not speak about common in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for the credit availed on inputs and input services. The Adjudicating Authority has allowed the credit and dropped the demand in regard to the credit availed on inputs. However, the credit availed on input services has been denied alleging that the appellant has not been able to establish nexus of the input services with the manufacturing activity. In Paragraph 4.23, there is a finding rendered by the Adjudicating Authority that the services availed qualify as input services in terms of Rule 2(l) of CENVAT Credit Rules, 2004. However, the credit is disallowed observing that the appellant has not produced one-to-one co-relation and also not been able to establish nexus of the input services with manufacturing activity. We are not a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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