2009 (7) TMI 1217 - HC - Service Tax

Scope of input service - Rule 2(l)(1) of CENVAT Credit Rules 2004 - scope of place of removal - Section 4(3)(c) of Central Excise Act

Summary

Issues: Interpretation of Rule 2(l)(1) of CENVAT Credit Rules, 2004 and Section 4(3)(c) of Central Excise Act regarding input service and place of removal.

The judgment by the Madras High Court involved the interpretation of Rule 2(l)(1) of CENVAT Credit Rules, 2004 and Section 4(3)(c) of the Central Excise Act, defining input service and place of removal. The court examined the definition of input service as any service used by a provider of taxable service for providing an output service or by a manufacturer directly or indirectly in relation to the manufacture of final products and clearance from the place of removal. The definition encompassed various services like setting up, modernization, renovation, repairs, advertisement, market research, storage, procurement of inputs, business activities, transportation, and other related services.

Regarding the definition of "place of removal" under Section 4(3)(c), the court noted it includes a factory, warehouse, depot, premises of a consignment agent, or any other place from where excisable goods are to be sold after clearance from the factory. The court, prima facie, concluded that based on the above provisions, the petitioner was not entitled to any interim order. Consequently, the court dismissed the petition, indicating that the petitioner's claim did not align with the interpretation of the relevant rules and acts provided in the judgment.