2015 (1) TMI 446

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....ENT Per Ms. Archana Wadhwa:  The appellants are engaged in the manufacture of 'Poly Resin' falling under Chapter 39. During the relevant, they were enjoying the SSI Notification. As they were also providing certain services and were paying service tax for the same, they were availing the Cenvat credit on service tax paid on the input services so utilized by appellants on the outward ser....

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....y. The said service tax credit was availed as an input credit for the services being provided by them and as such was available for utilization towards service tax payable on the output services. Ld. Advocate clarifies that after utilizing the credit for payment of output service tax, there was balance to the tune of Rs. 3,76,758/- which they transferred to their excise credit. In my view, the sai....

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....he said capital goods and input services do not have any nexus with the goods being produced by the appellants at present and also they have adduced no such evidence. It is in this context that the contention of the appellants that there is no need to establish the one to one co-relation between the inputs or input services with the final product, fails the test of merit and the legal requirement.....

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....n view of above, the case laws cited by the appellants in their defence are not relevant to their case. Thus, I find no reason to differ with the findings of the adjudicating authority on this count. Further, regarding imposition of penalty, I find that the appellants had utilized the credit knowingly for payment of duty involved in the clearance of final product though it had no relevance with th....