CESTAT grants Cenvat Credit for input services, citing precedents and nexus with manufacturing.

The CESTAT allowed the appeal, affirming the appellant's entitlement to Cenvat Credit for input services, citing precedents and the department's acceptance of similar orders in the past. The Member found the input services admissible, considering the nexus with manufacturing established in various judgments favoring the assessee. The decision overturned the Adjudicating Authority's denial of credit, emphasizing the consistency of treatment with previous cases involving the appellant's units and supporting the appellant's position on the issue.

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Issues:
1. Denial of Cenvat Credit on input services due to lack of nexus with manufacturing of final product.

Analysis:
The case involved the appellant taking Cenvat Credit on ISD invoices for various input services, with the credit distributed to other units. The department issued a show cause notice proposing denial of Cenvat Credit based on the audit objection regarding the nexus of input services with manufacturing. The Adjudicating Authority confirmed part of the demand, leading to an appeal before the Commissioner (Appeals) and subsequently to the CESTAT against the disallowance of Cenvat Credit as per the impugned order.

The appellant's representative argued that a previous order against a similar show cause notice was accepted by the department, settling the issue to the extent the demand was dropped. Additionally, the appellant cited various judgments where Cenvat Credit was allowed on similar input services. The representative contended that the issue was no longer under dispute based on these judgments and the department's acceptance of previous orders.

The Learned Member considered the submissions and records, noting that the genesis of the case was an audit objection against the appellant's units for the same input services. The Adjudicating Authority and CESTAT Mumbai had dropped the demand for the other unit, and the department had accepted the order in that case. The Member agreed with the appellant's argument, supported by case laws, that the input services were admissible, as established in various judgments favoring the assessee. Consequently, the Member modified the impugned order and allowed the appeal, affirming the appellant's entitlement to Cenvat Credit for the input services in question.

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