2016 (8) TMI 282

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....e facts of the case are that during the course of scrutiny, it was revealed that the respondent has availed the credit on manpower and recruitment supply agency service and security service which was availed by the job worker and not by the respondent. Therefore, a show cause notice was issued to the respondent to deny the credit availed on the above services on the premise that that these services have not been availed by the respondent, therefore they are not entitled to avail credit on these services. The adjudicating authority denied the credit and  demanded duty, interest and equivalent penalty was imposed on the respondent. On appeal before the Commissioner (Appeals), the Commissioner (Appeals) has examined the Rule 3 of Cenvat C....

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....ce] shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) to (x) - -------------------------------------------------- [(xi) the additional duty of excise leviable under [section 85 of Finance Act, 2005 (18 of 2005),] paid on - (i)      any input or capital goods received in the factory of manufacture of final product or [by] the provider of output service on or after the 10th day of September, 2004; and (ii)    any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input....

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....s under: 10. I have considered the arguments from both sides. The definition of "input services", nowhere specifies that the services have to be received and utilized within the factory. This position has been clearly held by the Tribunal in the case of Maharashtra Seamless Ltd. (supra). Rule 3 of the CENVAT Credit Rules specifically provides that credit of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the benefit of exemption specified in Notification No. 214/86-C.E. be allowed. I find that the orders relied upon by the departmental representative has not examined the express provision under Rule 3 of Cenvat Credit Rules or the recent clarification dated 19-1-2010 (supra)....