Appeal allowed: Appellant entitled to Cenvat credit on input services.

The Tribunal allowed the appeal, setting aside the appellate order. It emphasized the essential services provided by the appellant in relation to the manufacturing and installation process, leading to the decision in favor of the appellant regarding entitlement to Cenvat credit on input services, despite not being the manufacturer of the final product.

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Issues:
1. Entitlement to Cenvat credit on input services by a service provider not being the manufacturer of the final product.

Analysis:
The case involved a service provider who procured various input services for carrying on consulting services related to the supply and installation of a recovery boiler. The appellant claimed Cenvat credit on Service Tax paid on seven specific services. The Revenue contended that since the appellant was not the manufacturer of the boiler, it was not entitled to the Cenvat credit on the input services.

Upon hearing both sides and examining the records, it was noted that the appellant, although not the manufacturer of the boiler, provided essential services as a consulting engineer in relation to the installation and designing of the boiler. The Revenue did not deny the services provided by the appellant, which were crucial for ensuring that the boiler was manufactured according to the design to meet the buyer's requirements. The Tribunal found that the inputs procured by the appellant were indeed essential for providing the output service of a consulting engineer. Therefore, the denial of Cenvat credit was deemed inconceivable.

In conclusion, the Tribunal allowed the appeal, setting aside the appellate order. The judgment highlighted the significance of the services provided by the appellant in relation to the manufacturing and installation process, ultimately leading to the decision in favor of the appellant regarding the entitlement to Cenvat credit on the input services, despite not being the manufacturer of the final product.

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