CCE Vs. NAHAR INDUSTRIAL ENTERPRISES

JUDGEMENT

(1.) THE Revenue filed this appeal against the impugned order passed by the Commissioner (Appeals).

(2.) THE respondents are engaged in the activity of manufacture as well as they are output service providers. In the impugned order, the Commissioner (Appeals) held that the respondents are entitled for Cenvat credit of manufacturing activity for utilization towards payment of Service Tax. The Revenue is challenging these finding on the following grounds:

(3.) I find that as per Cenvat Credit Rules 2004 output service means any taxable service provided by the provider of service to a customer, client and a person liable to pay Service Tax and provider of taxable service include a person liable for paying Service Tax. Further, I find that as per CBEC Excise Manual of supplementary instructions where certain restrictions were imposed for payment of Cenvat credit. Para 24.2 is reproduced below: Utilisation of credit. The Cenvat credit may be utilized for payment of: