CENVAT credit on office furniture used for taxable output services was held admissible, with denial found unsustainable.

CENVAT credit on office furniture used in premises from which taxable output services are provided was found admissible. The analysis treated the claim as covered by a Board circular recognising credit on furniture and stationery used in office areas within the factory, and it also relied on prior Tribunal authority supporting the same position. On that basis, denial of credit on the furniture items was held unsustainable and the disallowance was set aside.

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Issues: Whether CENVAT credit on furniture used in the office premises from where taxable output services are provided is admissible.

Analysis: The office furniture was used in the appellant's premises for providing taxable output services. The Board's circular clarified that credit is available on furniture and stationery used in the office within the factory, and the issue was treated as covered by prior Tribunal authority. On that basis, the denial of credit was found unsustainable.

Conclusion: Credit on the furniture items was held to be admissible and the disallowance was set aside.

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