2017 (10) TMI 27

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.... port services on which they are discharging appropriate service tax liability during the period in question i.e. October 2008 to March 2012. During this period, appellants procured various inputs and input services for fabricating/manufacturing of structures like vessels and barges etc. which were subsequently used by them for rendering the taxable output services. Appellant availed the CENVAT credit of the central excise duty paid and the service tax paid on such inputs and input services. It is the case of the Revenue in the show-cause notice that such credit availed by the appellant is ineligible as these services and inputs are not used for rendering of taxable output services and utilisation of these amounts for discharging service ta....

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....ailment of CENVAT credit ends the moment appellant fabricates/manufactures the floating structures. It is his submission that once goods comes into existence after consuming the inputs and input services, it cannot be said that appellant can avail CENVAT credit on these items for rendering taxable output services. 6. On a careful consideration of the submissions made by both sides, we find that the appellant has a strong case on merits. 7. It is undisputed that there is discharge of appropriate service tax on the output services i.e. port services by the appellant and also undisputed that for rendering the said output services appellant uses floating structures like barges. It is the case of the Revenue that the said floating structur....