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TMI Blog2010 (9) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, the Commissioner had followed decisions of the Tribunal in the case of CCE, Mumbai-V v. GTC Industries Ltd. [2008 (12) S.T.R. 468 (Tri.- LB)] and in the case of Stanzen Toyotetsu India Pvt. Ltd. v. CCE, Bangalore [2009 (14) S.T.R. 316 (Tri. - Bang.)]. 2. In the appeal filed before the Tribunal, the Revenue has relied on the definition of input service contained in Rule 2(l) of CCR. It is submitted that the insurance service and outdoor catering service impugned are not covered by the definition of input service in the CCR. They are neither used in relation to the manufacture or clearance of the final products nor are they activities relating to business. The Commissioner had relied on the decision of the Tribunal in GTC Industries case (supra) which was not accepted by the department. The department had filed an appeal against the said order. Reliance is also placed on the judgment of the High Court of Bombay in the case of Indorama Synthetics (India) Ltd. v. CCE, Nagpur. The revenue has also relied on following case laws : (i) CCE v. Mahindra Sona Ltd., Ace Glass Containers Ltd. & Jindal Saw Ltd. [2008-TIOL-199-CESTAT-Mum = 2008 (10) S.T.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Tribunal which had decided the dispute regarding entitlement of credit of service tax paid on catering services in their own case. (i) CCE, Visakhapatnam v. Dr. Reddy's Laboratories Ltd. [Final Order Nos. 1274/2009 dated 22-10-2009 in Excise Appeal No. 784/2009] (ii) CCE, Visakhapatnam v. Dr. Reddy's Laboratories Ltd. [Final Order Nos. 1297 & 1298/09 in Excise Appeal No. 343 & 344/09] (iii) CCE, Hyderabad v. Dr. Reddy's Laboratories Ltd. [Final Order Nos. 1313 to 1316/09 in Excise Appeal No. 361 to 364/09] 5. I have carefully studied the case records and considered the submissions made by the learned SDR. As regards admissibility of credit of service tax paid for outdoor catering, dispute stands decided in favour of the respondents vide Final Order Nos. 1274/2009 dated 22-10-2009; 1297-1298/09, dated 28-10-2009 & 1313 to 1316/2009 dated 28-10-2009 in the assessee's own case. As regards the Group Medical Insurance of the employees, the dispute stands settled in favour of the assessee by a decision of this Tribunal in Stanzen Toyotetsu India Pvt. Ltd. (supra). I reject the appeal of the revenue on credit r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt or sales promotion, market research, storage upto the 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 upto the place of removal; In the inclusive part, the items listed include activities relating to business such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, etc. Obviously the activities such as credit rating & share registry are not used by the manufacturer in or in relation to the manufacture of final products. In the case of the definition of input services, therefore, the inclusive part enlarges the scope of the specific and substantive part of the definition. Activities relating to business need not necessarily be used in or in relation to the manufacture of final products. 7. The definition of input services contained in the substantive part is enlarged by the inclusive park This is obvious from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong the items specifically listed. By no stretch of imagination, activities such as credit rating and share registry satisfy the requirement of use in or in relation to the manufacture of final products. Therefore, the expression 'means', and 'includes' used in the definition of 'input service' without doubt enlarges the scope of the definition as appearing in the substantive part. 8.1 This issue was considered by the Hon'ble High Court of Mumbai in Coca Cola India case (supra). Their lordships examined the following questions and answered them in the affirmative. (a) Whether services of advertising and marketing procured by the Appellants in respect of advertisements for aerated waters are covered by the definition of the words "input services" as defined in Rule 2(l) of the CENVAT Credit Rules, 2004, when admittedly the - Appellants manufacture concentrates exclusively used for the manufacture of the respective aerated waters which are advertised by the Appellants? (b) Whether the advertisement or sales promotion of aerated waters undertaken by manufacturer of concentrate is covered by the inclusive part of the definition of "input service" contained in Rule 2(l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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