1. Revenue filed the appeal against Order-in-Appeal No.12/2009 dt. 20.4.2009 passed by Commissioner (Appeals).

2. The brief facts of the case are that respondents, a 100% EOU, are manufacturers of Rear Axles Housing (Motor Vehicle parts) falling under CH 8708 of CETA'85 and exported their finished goods to various countries and availed cenvat credit of duty paid on inputs as well as service tax paid on input services used by them in relation to manufacture of final products. In respect of goods exported to USA, prior to delivery, the goods are subjected to quality control and cleaning operations at the warehouse of buyer. For this purpose, the respondents engaged the services of M/s. Product Action International, USA for carrying out the quality control and cleaning operations such as deburring and removal of rust developed during transit. As a recipient of service they paid service tax under Business Auxiliary Service under reverse charge and availed credit of the service tax paid. A show cause notice dt. 3.3.2008 was issued to the respondents demanding reversal of service tax credit of Rs.10,28,524/- on the grounds that the said activities have no nexus to the manufacture of