2019 (4) TMI 1414

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....ged in manufacture and clearance of excisable goods i.e. Pre-Stressed Concrete Sleepers used in laying Railway Tracks/Lines and they are also registered as Service Tax assessee engaged in providing services pertaining to contractual works i.e Construction of Staff Quarter, Railway Bridges, Station Building, Platform shelter etc. for the South Western Railway. These works are exempted from the purview of service tax vide Notification No. 25/2012 ST dated 20.06.2012. Appellants have also taken on lease a Multifunctional Complex with Budget Hotels for 30 years from M/s. Ircon Infrastructure & Services Ltd., Saket, New Delhi which has been rented out for shops and hotel accommodation and also used for office administration. During the audit, De....

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....reciating the definition of 'input service' as contained in Rule 2(l) (ii) of Cenvat Credit Rules, 2004. He further submitted that the cenvat credit is utilized for payment of central excise duty on their manufactured product i.e. Pre-Stressed Sleepers which has no nexus to the final product. He further submitted that the adjudicating authority had wrongly held that the assessee is not engaged in manufacture of exempted goods/services whereas in fact the assessee is also engaged in providing Works Contract service to railway which are exempted. 4. On the other hand the learned counsel for the respondent defended the impugned order and submitted that the Commissioner (Appeals) has upheld the Order-in-Original and rejected the appeal of the ....

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.... on record and after going through the impugned order, I find that the Commissioner (Appeals) has relied upon the decision of the Tribunal while coming to the conclusion that cross utilization of credit on input and input services and capital goods is permitted by law. Further I find that the assessee has rightly taken the cenvat credit and utilized a part of the same as there is no bar in cross utilization as held in the decisions cited supra. In the present case both the authorities below have dropped the demand raised by the Department and has held that the assessee has not taken the cenvat credit irregularly and therefore the demand raised by the Revenue is unsustainable in law. In this regard it is relevant to reproduce the relevant fi....