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TMI Blog2011 (7) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... f input of capital goods or clearance of final product up to place of removal, any service rendered and service tax paid, would fall within the definition of input service - Such amendment made effective from 01.4.2008, transportation charges incurred by the manufacturer for clearance of final products from the place of removal has to be treated as included in the definition of input services - Decided in favour of assessee. - E/1253, 1693 and 1750 of 2009 - - - Dated:- 29-7-2011 - Mr. B.S.V. Murthy, J. For Appellant : Shri S.K. Mall, SDR Per : Mr. B.S.V. Murthy; All the three appeals, even though they are against different impugned orders have a common issue and therefore, all the appeals are taken together and a com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax paid, would fall within the definition of input service. Hon'ble High Court took a view that till such amendment made effective from 01.4.2008, transportation charges incurred by the manufacturer for clearance of final products from the place of removal has to be treated as included in the definition of input services. For better clarity Para 31 and 32 of the order of the Hon'ble High Court are reproduced below which make it very clear that in the circumstances existing in all these cases, service tax credit would be admissible :- 31. The phrase 'activities relating to business' is an omni-bus one and it finds a place in the inclusive definition. The question is, by a judicial interpretation, outward transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision is made in the first part of the definition portion of the Cenvat Rules which refers to 'clearance of final products from the place of removal' and in the second part (inclusive) of the definition when the phrase used is 'activities relating to business such as', merely because in that portion of the definition either transportation charges is not included or service rendered for clearance of final products is not included, it is impermissible to read those words as in the earlier portion of the definition, it is specifically provided for. It is a well known rule of interpretation that when the statute uses words and phrases in a particular section, meaning has to be given in each of those sections. When the statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oval. The phrase outward transportation upto the place of removal used in the inclusive portion of the definition (the second part), has to be read along with the word inward transportation of input or capital goods. It has no reference to 'clearance of final products'. However, when the claims are put forth on the basis of the said circular of 23.8.2007, for benefit of CENVAT credit, even in the cases where the aforesaid conditions are not satisfied relying on the words clearance of final products from the place of removal, the Central Government thought it fit to amend the provision from 1.4.2008 by substituting the word 'upto' in place of 'from', in Clause (ii) of Rule 2(1) making the intention clear i.e. whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause does not mention transport service in particular. The second clause restricts transport service credit up to the place of removal. When these two clauses are read together, it becomes clear that transport service credit cannot go beyond transport up to the place of removal. The two clauses, one dealing with general provision and another dealing with a specific item, are not to be read disjunctively as to bring about conflict and to defeat the laws scheme. The purpose of interpretation is to find harmony and reconciliation among the various provisions'. Giving effect to the said judgment, when the circular was issued by the Board dated 23.8.2007 the circular came up for consideration before the Punjab and Haryana High Court where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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