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TMI Blog2012 (11) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... 's contention was that such services is neither input service for output service nor immovable property service is service for goods in terms of rule 2(A)(i) read with rule 6 of Cenvat Credit Rules, 2004. The original adjudicating authority disallowed the cenvat credit and ordered recovery of an amount of Rs. 2,96,892/- along with interest and imposed penalty. The present appeal is against this order. 2. It was submitted by the appellants that the original adjudicating authority placed reliance on CBEC Circular No. 98/1/2008-ST dated 04.01.2008 which clarified that such input service of construction is to be provided for output service i.e. building which is neither dutiable nor taxable under service tax. They argued that the clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. It was argued by him that the definition given under Rule 2 squarely covers their case. The thrust of the argument is that the definition of input as contained in Rule 2(k)(ii) is all goods used for providing any output service. 4. This Bench of the Tribunal has dealt with the similar issue in the case of Mundra Port & Special Economic Zone Ltd. v. CCE [2009] 18 STT 314 (Ahd.-CESTAT). I quote: "We find that the definition of input is provided in Rule 2(k), in two different clauses i.e. (i) and (ii). Clause (i) refers to the definition of inputs for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given to the definition of inputs as contained in clause (ii), the distinction drawn by the legislation, i.e. by giving wider scope to the definition of input as contained in clause (i) and restricted as given in clause (ii) would become otiose and as such frustrative of the legislative intent. 7. Having observed as above, we proceed to find out the true meaning and interpretation of the expression "used for providing a output service". A plain and simple English meaning of the above would be the goods which are required for providing a output service. Admittedly jetty is required for providing the port service in the same manner as any office building etc. is required for providing any other output service. The question is as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract service is an input service for the output service namely immovable property. Immovable property is neither subjected to central excise duty nor to service tax and input credit of service tax can be taken only if the output is a service liable to service tax or a goods liable to central excise duty. Therefore he argued that the credit on input service will not be available to the appellant. 7. Reliance was placed by the appellants on the judgment of the Hon'ble Supreme Court in the case of Ratan Melting & Wire Industries (supra) which held that the CBEC circulars clarifying legal position contrary to the law laid down by the Hon'ble Apex Court is required to be ignored. This contention of the appellant is not sustainable. The obse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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