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TMI Blog2011 (3) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and credit cannot be denied so long as there is no case of misuse of credit - Decided in favour of the assessee - E/ 2137/2009 - 268/2011-SM(Br) - Dated:- 30-3-2011 - Mathew John, J. For Appellant : Shri Hemant Bajaj, Adv. For Respondent : Shri K P Singh, SDR Per: Mathew John: The Appellant is before the Tribunal aggrieved by the denial of Cenvat credit on services availed by the appellant company on account of "professional fees towards providing advisory services for acquisition of company" during the year 2005-06. The credit was taken on 30.6.06 and the show cause notice was issued on 16.11.2010. The adjudicating authority reproduced the definition of "input service" in Cenvat Credit Rules and gave a finding that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case, the appellant have taken cenvat credit in respect of services which have been used neither in or in relation to the manufacture of final products and clearance of final products nor used for providing an output service." 2. The Counsel for the appellant submits that the definition of input service as it stood at the relevant time, was wide enough to cover the impugned services because it covered activities relating to business such as advertising, accounting, auditing, financing, credit relating, share registry and security. He relies on the decision of the Mumbai High Court in the case of Coca Cola India Ltd Vs CCE reported in 2009 (242) ELT 116 Bombay . In that case, the impugned service was advertisement services but the obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connected with the said business. In Mazgaon Dock Ltd Vs Commissioner of Income-tax and Excess Profits Ta AIR 1958 SC 861 the Hon'ble Supreme Court held as follows: 14.The word 'business' is as has often been said, one of the wide import and in fiscal statutes, it must be construed in a broad rather than a restricted sense. 15. The word 'business connotes', it was observed by this court in Narain Swadeshi Weaving Mills V Commissioner of Excess Profits Tax 1955 1 SCR 952 'some real, substantial and systematic or organized course of activity or conduct with a set purpose". The term 'business' therefore, particularly in fiscal statutes, is of wide import." 3. The Counsel further relies on the decision of Nagpur Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 'such as' in the inclusive apart of the definition of input service is only illustrative and not exhaustive. Accordingly, we hold that all services used in relation to the business of manufacturing the final product are covered under the definition of 'input service' and in the present case, the outdoor catering services being integrally connected with the business of the manufacture of cement, credit of service tax paid out on catering services has been rightly allowed by the Tribunal." 4. The Counsel relies on the said judgment to emphasis the point that the list of services mentioned after the words 'such as' does not have an effect of restricting the definition of services eligible for credit. The list is only illustrative and not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory and advertising may have indirect nexus with the goods manufactured, but 'management consultancy' and service in relation to 'raising of capital' have no direct or indirect nexus. 9. Considered arguments of both sides. 10. In the first place, I notice a factual error in the finding of the Commissioner (Appeals) at para 7 of his order where it is mentioned that the proposed activity was raising of capital for a new company. The matter under consideration was acquisition of a new company. The capital of the existing company had to be raised to pay the share holders of the target company. Therefore, the bill raised by the consultant is in relation to providing advisory service for raising the equity capital of the appellant company. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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