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TMI Blog2010 (7) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... notices for irregular availment of Cenvat credit of the service tax paid on the following services : (1) recruitment of staff services (2) banking services (3) repair and labour charges of the vehicles 4. The issue involved in this cases is whether the above services would fall under the definition of 'input services' to be eligible for availing cenvat credit of the service tax paid. 5. Learned Commissioner (Appeals) while setting aside the order-in-original has recorded the following finding : ".....I am of the firm view that, as long as the service availed by the manufacturer relates to his business and as long as the service is of a kind mentioned in the inclusive portion of the definition of input service under the Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal." The above definition is in two parts: the first part gives the basic definition of 'input service' while the second is an inclusive one that specifically mentions certain services to be included within the ambit of "input services". The basic definition limits the scope of input services to those whose use has a nexus directly or indirectly, in or in relation to, manufacture and clearance of final prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion clause declares that they shall include. Further, is the definition Oven in rule 2(l)(ii), the inclusive part of the definition expands the scope of "input service" as given in the basic definition by bringing within its ambit, services which would not normally get covered by the main definition. A perusal of the services in the inclusive part of the definition indicates that they have no nexus with the manufacture, storage or sale of the final product. It is true that one would not, unless forced, even when the definition is in the form "includes", carry the extension beyond borderline or doubtful cases. Even when an extended definition is used, it is necessary to draw a line to exclude categories obviously not intended to be included. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Considered the submissions made at length by both sides and perused the records. Learned Commissioner (Appeals) has allowed the Cenvat credit relying upon various decisions of the Tribunal. At the same I find that in the case of appellant's sister concern Hon'ble High Court of Mumbai has laid down the principle for eligibility for availment of cenvat credit of the service tax paid on input services. I may reproduce the said ratio: "38. Service tax therefore, paid on expenditure incurred by the assessee on advertisements sales promotion, market research will have to be allowed as input stage credit more particularly if the same forms a part of the price of final product of the assessee on which excise duty is paid. In other words, credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve definition. To illustrate, input services used in relation to setting up, modernization, renovation or repairs of a factory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal. This would follow from the observation of the Supreme Court in Kerala State Co-operative Marketing Federation Ltd. v. Commissioner of Income-tax 1998 (5) SCC 48, which is as under : 7. We may notice that the provision is introduced with a view to encouraging and promoting growth of co-operative sector in the economic life of the country and in pursuance of the decl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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