2009 (10) TMI 412

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....i, Consultant, for the Appellant. Shri R.S. Srova, JDR, for the Respondent. [Order ].- The appellant is engaged in the manufacture of RCC Poles and is availing small scale industries exemption under the SSI Exemption Notification No. 8/2003-C.E., dated 1-3-2003. A show cause notice was issued proposing to deny Cenvat credit of Rs. 8,067/- being the service tax paid during the period of exemp....

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....e Notification. Therefore, he submits that appellant is eligible for the benefit of Cenvat credit availed by them. 3. Learned DR, however, submits that there is no clarity as to whether Cenvat credit availed is on the inputs or input services. He refers to following paragraph in the Order-in-Original in support of his contention, which is reproduced below:- "He submitted that specified goods....

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....er has mentioned that "the point to be examined now is whether cenvat credit of service tax for the period exemption is admissible to the assessee or otherwise. He himself agrees that the exemption Notification does not explicitly restrict availment of service tax credit in order to avail frill exemption of duty thereunder". Hence I proceed on the basis that what has been disallowed is the Cenvat ....

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....d exempted services. In this case, Notification specifically provides for denial of credit of duty paid on inputs, but does not provide for denial of Cenvat credit on input service. It has to be noted at this stage that in respect of capital goods also, the credit is allowed even during the period of exemption to SSI Manufacturers and this is because Notification does not provide for denial of Cen....