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of <h1>Tribunal allows appeal, validates Cenvat credit for services related to manufacturing.</h1> <h3>M/s. Birla Tyres Versus Commissioner of Central Excise, Customs & Service Tax-BBSR-I</h3> M/s. Birla Tyres Versus Commissioner of Central Excise, Customs & Service Tax-BBSR-I - 2016 (342) E.L.T. 246 (Tri. - Kolkata), 2017 (49) S.T.R. 369 (Tri. ... Issues:- Admissibility of Cenvat Credit on services provided by Automotive Tyre Manufacturing Association (ATMA) to the appellant during 2007-2008 and 2008-2009.Analysis:1. The appellant filed an appeal against Order-in-Appeal No.23/CE/BBSR-I/2011 dated 15.03.2011 passed by the Commissioner (Appeals), Bhubaneswar. The appellant requested multiple adjournments, which were not allowed indefinitely, leading to the case being taken up for disposal.2. The issue revolved around the admissibility of Cenvat Credit on services provided by ATMA to the appellant. The First Appellate Authority had opined that the services provided by ATMA were not related to the manufacturing activity of the appellant. The Revenue strongly defended this position.3. The Tribunal examined the services provided by ATMA to the appellant, which included acting as a conduit between Government Departments and tyre companies, briefing members on changes in Government Policy, and facilitating meetings to address industry issues. The Tribunal disagreed with the First Appellate Authority's conclusion that the services had no relation to the manufacturing activities of the appellant.4. It was determined that the services provided by ATMA were indeed related to the manufacturing activity of the appellant. Consequently, the Tribunal held that the Cenvat credit was correctly taken by the appellant, allowing the appeal with any consequential relief.This judgment highlights the importance of establishing a nexus between services availed and the business activities for claiming Cenvat Credit. The decision emphasizes the need for a direct connection between the services received and the core operations of the business to qualify for such credits.
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