2017 (5) TMI 330

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.... is that the Cenvat credit on production or processing of goods is not liable to be paid by the job worker as service provider as the same was exempted under Notification No.8/05-ST dated 1-3-2005, therefore service tax was wrongly paid by the service provider, hence cenvat credit of the same amount is not admissible to the appellant. 2. Shri. D.H. Nadkarni, Ld. Counsel for the appellant submits that whether service tax was payable or not that is not criteria for allowing Cenvat credit. The only criteria is that if the service provider has discharged service tax and the said service was received by manufacturer or service provider used in the manufacture of final product or providing output service, credit is available. This fact is not ....

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.... [1993(66) ELT 81(Tri.)] (d) C.J. Industries Vs. Collector of C. Ex. [1989(44) ELT 347(Tri.)] 4. I have carefully considered the submissions made by both sides. 5. I find that lower authorities have disallowed the Cenvat credit in respect of service namely production or processing of goods provided by the job worker to the appellant only on the ground that the said service was exempted under notification No. 8/05-ST that means service per se was very much taxable and job worker opted to pay service tax and not to avail exemption notification. The notification No. 8/2005-ST was issued under the power conferred by Section 93 of Finance Act, 1994 which reads as under: "93. Power to grant exemption from service tax.- ....

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....fficial Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon: Provided that, unless specifically provided in such notification, no exemption therein shall apply to excisable goods which are produced or manufactured (i) in a 25 [free trade zone 26 [or a special economic zone]] and brought to any other place in India; or tc" (i) in a 2[free trade zone 3[or a special economic zone]] and brought to any other place in India; or" (ii) by a hundred per cent. export-oriented undertaking and 27 [brought to any other plac....