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TMI Blog2012 (6) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... moval till it reaches its destination falls within the definition of input, service - the word transportation is included in the phrase 'clearance of final products from the place of removal' after the final products has reached the place of removal - in the later portion of the definition the words 'activities relating to business’ is used to expand the meaning of the word 'input service'- while dealing with outward transportation two words inputs' or 'capital goods' are conspicuously missing as after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valid reasons and justification for the impugned decision in setting aside of Order-in-Original. 4. I have gone through the details of the case and related judicial pronouncements. The Commissioner (Appeals) has found that in the context of the definition of input service under Rule 2(1) of the Cenvat Credit Rules, 2004 as in force up to 01.04.08. The Larger Bench held that the services availed by the manufacturer for outward transportation of final products from the place of removal or input services in terms of the definition and the service tax paid on such freight charges is admissible. In the present case the period involved is from October 2006 to March 2007 which is prior to 01.04.08 and therefore the definition of input service w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion charges, in such cases, it fell within the phrase "clearance of final products from the place of removal" and therefore, the assessee was entitled to CENVAT credit. 30. The definition of "input service' contains both the word 'means' and 'includes', but not 'means and includes'. The portion of the definition to which the word means applies has to be construed restrictively as it is exhaustive. However, the portion of the definition to which the word includes applies has to be construed liberally as it is extensive. The exhaustive portion of the definition of 'input service' deals with service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, it also includes clearance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rally. Specifically what are the services which fall within the definition of 'input service' has been clearly set out in that portion of the definition. Thereafter, the words 'activities relating to business - an omnibus phrase is used to expand the meaning of the word 'input service'. However, after using the omnibus phrase, examples are given. It also includes transportation. The words used are (a) inward transportation of inputs or capital goods (b) outward transportation up to the place of removal. While dealing with inward transportation, they have specifically used the words 'inputs' or 'capital goods'. But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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