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TMI Blog2011 (3) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... ular State the problems which are faced in ail these establishment in a Linguistic State and as a reasonable employer if he wants to satisfy the aspirations of the people in a lawful manner, he cannot be found fault with, expenses incurred by the assessee would fall within the definition of input service and they are entitled to CENVAT credit, substantial question of law is answered in favour of the assessee and against the revenue - 47 of 2009 - - - Dated:- 28-3-2011 - N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : Shri K.S. Ravi Shankar, Advocate, for the Assessee. Shri N.R. Bhaskar, Advocate, for the Department. [Judgment per : N. Kumar, J.]. The revenue as well as the assessee have preferred the appeal against the order passed by the Tribunal [2008 (12) S.T.R. 498 (Tribunal)]. 2. The assessee availed input service tax credit among other things for the function arranged for Kannada Rajyostava Day and colour photography expenses in respect of the inaugural function of Kengeri Police Station. The expenses incurred in respect of Catering service and Mediclaim Insurance for the said function has been accepted. But they have rejected the input service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal is right in concluding that the allegation of intention to evade duty and wilful suppression of facts had not been brought out in the show cause notice when the show cause notice alleged the said suppression of facts in the light of Hon ble Apex Court judgment in the case of Continental Foundation Joint Venture v. Commissioner of Central Excise, Chandigarh-I? [2007 (216) E.L.T. 177 (S.C.)] CEA 47/2009 filed by the assessee was admitted on 30-6-2009. 5. The learned counsel appearing for the assessee submitted that in the State of Karnataka, November 1st is celebrated as a Karnataka Rajyostsava day. That is the day on which the present State of Karnataka was formed integrating the five regions where Kannada speaking people are in a majority. It is treated as a State Festival and a holiday is declared. Most of the employees working in the assessee s factory are Kannada speaking people. It is in this context as a welfare measure in order to protect and preserve the culture of the State of Karnataka and also to maintain industrial peace, they have been taking effective steps to celebrate Karnataka Rajyostava in the premises of the factory in a big way. On such occasions to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share registry, and security, inward transportation of inputs or capital goods and outward transportation of inputs or capital goods and outward transportation up-to the place of removal. . 8. In the definition of the word input service , the legislature has used both the words means as well as includes but not means and includes . Therefore, in so far as clauses (i) and (ii) of the definition is concerned, the word used is means and therefore, it is exhaustive. It is thereafter the legislature has consciously used the word and includes which is extensive. Therefore, after specifically referring to the output service and input service rendered directly or indirectly in the manufacture of final products and clearance of final products, the inclusive definition sets out various services and further enlarge the scope by saying that all activities relating to business constitutes input service. One such activity relating to business which is specifically provided for, is the security of the establishment. The said inclusive definition is not exhaustive. It includes accounting, auditing, financing, credit rating, share registry etc. These are in no way connected with manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on a Judgment of the Bombay High Court in the case of Commissioner of C.Ex. Nagpur v. Ultratech Cement Ltd., reported in 2010 (20) S.T.R. 577 (Bom.) = 2010 (260) E.L.T. 369 (Bom.) at para 31 reads under :- 31. In our opinion the ratio laid down by the Apex Court in the case in Maruti Suzuki Ltd., (supra) in the context of definition of input in Rules 2(k) of 2004 Rules would equally apply when interpreting the expression activities relating to business in Rule 2(l) of 2004 Rules. No doubt, that the inclusive part of the definition of input is restricted to the inputs used in or in relation to the manufacture of final products, whereas the inclusive part of the definition of input service extends to services used prior to/during the course of/after the manufacture of the final products. The fact that the definition of input service is wider than the definition of input would make no difference in applying the ratio laid down in the case of Marutj Suzuki Ltd., (supra) while interpreting the scope of input service . Accordingly in the light of the Judgment of the Apex Court in the case of Maruti Suzuki Ltd., (supra), we hold that services having nexus or integral con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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