2016 (3) TMI 1041

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...., commissioning and installation etc. They have been availing Cenvat credit of service tax paid on commercial construction service and used such credit for payment of excise duty of industrial furniture. The Department entertained a doubt regarding admissibility of credit on industrial construction service as the said service had no nexus with manufacture and clearance of excisable goods. Accordingly, proceedings were initiated by issue of show cause notice dated 02/8/2010 and resulted in original order dated 16/2/12. The Original Authority disallowed a credit of Rs. 10,55,318/- and imposed equal penalty on the appellants. On appeal, the Commissioner (Appeals) vide his impugned order upheld the original order and rejected the appeal. Aggrie....

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....ommercial construction in their case. It is an admitted fact that the input services, namely commercial construction service, is used for providing output services as clearly admitted in the show cause notice and in the proceedings before the lower Authorities. The allegation that credit taken on input services which was used for providing output service cannot be utilized for payment of Central Excise duty is unsustainable in terms of the provisions of Cenvat Credit Rules, 2004. The Rules do not provide for any one to one co-relation between credit legally availed and its utilization. 3. The learned AR reiterated the findings of the lower Authorities and submitted that the credit on commercial construction service is not available to the ....