2020 (5) TMI 150

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....ipal manufacturer. They availed credit on inputs and input services used for such process of machined operations. The department was of the view that the credit availed of service tax paid on various input services is not eligible to the appellants for the reason that the activity of machining operations is an exempted service as per Notification No.25/2012-ST dt. 20.06.2012 (Sl.No.30). SCN was issued alleging that the appellants have wrongly availed credit on input services used for providing exempted services. After due process of law, the original authority confirmed the demand, interest and imposed penalty. The same was upheld by the Commissioner (Appeals). Hence this appeal. 2. On behalf of the appellant, Ld. counsel Ms. S. Sridevi ap....

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....availed credit on various input services which were used for manufacture of the finished products and there were not used for providing a service which is exempted. The department has not disputed that the appellant is a job worker of the principal manufacturer and also the fact that the finished products have suffered excise duty. This being so, the allegation that the appellant is not eligible to avail credit on the input service stating that the said services have been availed for providing exempted output services is factually incorrect. She relied upon the decision of the Tribunal in the case of National Plastic Technologies Vs CGST & CE Chennai - 2019 (4) TMI 899 CESTAT Chennai, Shree Organo Chemicals Ahmedabad P. Ltd. Vs CCE Ahmedaba....

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....o 'manufacture' of intermediate products, the said process is an exempted service as per the notification. The credit availed on input service used for exempted service is against the provisions of Rule 6 of CCR. The department has rightly denied credit and ordered for recovery of the same. 4. Heard both sides. 5. It is not disputed that the appellants are job worker for the principal manufacturer. The appellant has furnished a letter issued to them by the principal manufacturer in which it is stated that they are job workers of the principal manufacturer. It is also stated in the said letter that the principal manufacturer cleared the finished products upon payment of applicable Central Excise duty. Thus when the semi-finished goods are ....