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TMI Blog2009 (11) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods, the benefit of Cenvat Credit in respect of such service cannot be allowed. But no penalty is imposed. The appeal is disposed of. - E/516 OF 2008 - A/632/2009/SMB/C-IV - Dated:- 3-11-2009 - P.G. CHACKO, JUDICIAL MEMBER S.M. Vaidya for the Appellant. J.C. Patel for the Respondent. ORDER 1. This appeal filed by the department, is directed against the order of the Commissioner (Appeals) permitting the respondent to avail themselves of the benefit of CENVAT credit on certain services recognised by the appellate authority as "input services" within the meaning of section 2(l) of the CENVAT Credit Rules, 2004. During the material period, the respondent had taken CENVAT credit of service tax paid on (a) construction of buildings, (b) repairs and maintenance of such buildings, (c) manpower recruitment (recruitment of security guards) and (d) cleaning services—all these undertaken in a residential colony situated outside the factory premises. In adjudication of the relevant show-cause notice, the original authority held these services to be outside the purview of the definition of "input service" given under Rule 2(l) of the CENVAT Credit Rules and disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould qualify to be an input service. Ld. DR means to say that the mere mention of a service in the exclusive part of the definition would not per se entitle the service recipient to claim CENVAT credit. 2. On the other hand, ld. counsel for the respondent seeks to distinguish the case of Maruti Suzuki Ltd. (supra), from the instant case. He points out that, in the case of Maruti Suzuki Ltd. (supra), the Apex Court split the definition of 'input' into three parts, viz., the main part, the inclusive part and the place of use. Ld. counsel submits that, the main part and the inclusive part of the definition of 'input' were held to be qualified by the place of use. On the other hand, according to the ld. counsel, in a case involving interpretation of the definition of 'input service', the place of use is irrelevant. It is pointed out that many of the services specified in the inclusive part of the definition of 'input service' are services rendered outside the factory. Secondly, it is submitted that the nexus to be established between the main and inclusive parts of the definition of 'inputs service' is much broader when compared to the nexus between the corresponding parts of the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on order No. A/55/09, dated 16-1-2009 passed by this Bench in another earlier case of the same assessee (Appeal No. E/475/08), wherein the order dated 13-12-2007 was followed as binding precedent. 3. I have given careful consideration to the submissions. The three services in question are (a) construction service (b) repairs and maintenance service, (c) manpower recruitment service (d) cleaning service, all of which were provided by the respective service providers at the residential colony outside the respondent's factory. Employees of the respondent reside in the said colony. Residential buildings were constructed, old residential buildings were repaired and maintained, security guards for the colony were recruited by a manpower recruiting agency and the residential premises were cleaned by another agency. The question is whether any or all of these services could be held to be 'input service' within the ambit of the definition of 'input service' given under rule 2(l) of the CENVAT Credit Rules, 2004. This definition reads as under :— "(l) 'input service' means any service,— (i) used by a provider of taxable service for providing an output service; or (ii) used by the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;" Their Lordships considered the above definition to be divisible into three parts; (1) specific part (main or substantive part); (2) inclusive part; (3) place of use. Further discussion relevant to the instant case can be had from para 14 of the judgment and the same reads as under :— ". . . It may, however, be noted that in the definition of 'input' the expression 'used in or in relation to the manufacture of final products' is not a standalone item. It has to be read in entirety and when so read it reads as 'used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not'. These words 'whether directly or indirectly' and 'whether contained in the final product or not' indicates the intention of the Legislature. What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, which it is to the effect that, where the inclusive part of a definition provides a list of items, any such item should also satisfy the quintessential ingredients of the main part of the definition. In other words, the definition has to be considered in its entirety. The inclusive part is not independent of the main part. It is not a 'standalone' provision. This ruling is applicable to "input service", given the definition of this expression under rule 2(l) of the CENVAT Credit Rules. There is nothing in this definition to indicate that the legislative intent behind it is different from the one underlying the definition of 'input'. Accordingly, I hold that any service which is apparently covered by the parameters of the inclusive part of the definition of 'input service' should also satisfy the quintessential requirements of the main part of the definition and, accordingly, any person claiming the benefit of CENVAT credit on input service in terms of the inclusive part of the definition of 'input service' should establish that such service was used, directly or indirectly, in or in relation to the manufacture of his final products or the clearance of such products from his fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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