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Facts:
The Appellant manufactured drills/tools and claimed CENVAT credit on job-work charges for grooving on which the service provider charged service tax which was eligible for exemption under Notification No.8/2005-ST dated 01-03-2005. The department denied the credit on the ground that the service provider should not have charged service tax and consequently the Appellant was not eligible for any credit
Held:
The Hon. Tribunal held that, whether the service provider was entitled for exemption and not required to pay duty at all, cannot be a consideration for the jurisdictional officers at the end of service receiver. Once service tax was paid and service used in or in relation to the manufacture of the final products, the Appellant was rightly entitled to avail CENVAT credit.
