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TMI Blog2013 (1) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case. The outward transport service used by the manufactures for transportation of finished goods from the place of removal upto the premises of the purchaser is covered within the definition of input service provided in rule 2(l) of the Cenvat Credit Rules, 2004. - TAX APPEAL No. 1836 of 2010 - - - Dated:- 22-9-2011 - MR. AKIL KURESHI AND MS SONIA GOKANI JJ. Appearance: MR Y.N. RAVANI for Appellant(s): 1, MS AVANI S MEHTA for Opponent(s): 1, ORAL ORDER (Per : HONOURABLE MS JUSTICE SONIA GOKANI) 1. Being aggrieved by the order of Customs, Excise Service Tax Appellate Tribunal (CESTAT) dated 26.6.2009, the assessee-respondent has preferred an appeal u/s. 35G of Central Excise Act, 1944 ( hereinafter referred to as Act ) proposing following question of law: (1) Whether in the facts and circumstances of this case the CESTAT is correct in holding that Service Tax credit on Goods Transportation charges for Outward freight is admissible when such services are not related to manufacture directly or indirectly in or in relation to the manufacture of final products and especially when the service rendered in residential colony of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal challenged by the Revenue in the present case is largely covered by the decision of this Court given in case of Commissioner of Central Excise and Customs V/s. Parth Poly wooven Pvt. Ltd. in Tax Appeal No. 419 of 2010 and as rightly held by the Tribunal, the service tax paid on transportation charges upto the port in case of exports requires to be held admissible and the place of removal in case of present assessee-respondent would not be factory gate but the same would be the port. Therefore, service tax paid on the transportation charges upto the port in case of exports is rightly held by the Tribunal as admissible and therefore, the credit on service tax paid on outward transportation has been held to be admissible required to be upheld. It would be apt to reproduce the relevant findings of the Court given in case of Parth Poly wooven Pvt. Ltd. (Supra) portion of the judgment: 8. Broadly stated, case of the assessee is that service tax paid on GTA for outward transportation of the goods even beyond the place of removal is eligible for Cenvat Credit in view of the definition contained in rule 2(l) of the Cenvat Credit Rules defining the term input service . On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is obvious that the words used in an inclusive definition denote extension and cannot be treated as restricted in any sense ...... Where we are dealing with an inclusive definition it would be inappropriate to put a restrictive interpretation upon terms of wider denotation . 17.3 In the case of Ramanlal Bhailal Patel v. State of Gujarat, AIR 2008 SC 1246 the Apex Court found that 'person' is defined in an inclusive definition. It was observed that in such a case, the use of word 'includes' indicates an intention to enlarge the meaning of the word used in the Statute. 17.4 In the case of Bharat Cooperative Bank (Mumbai) Ltd. v. Coop. Bank Employees Union, AIR 2007 SC 2320, the Apex Court observed as follows: On the other hand, when the word "includes" is used in the definition, the legislature does not intend to restrict the definition; makes the definition enumerative but not exhaustive. That is to say, the term defined will retain its ordinary meaning but its scope would be extended to bring within it matters, which in its ordinary meaning may or may not comprise. Therefore, the use of the word "means" followed by the word "includes" in Section 2(bb) of the ID Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst part of the definition defines the meaning of the word 'sale price' and must, in our view, be given its ordinary, popular or natural meaning. The interpretation thereof is in no way controlled or affected by the second part which 'includes' certain other things in the definition. This is a well-settled principle of construction. Craies on Statute Law (7th Edn. 1.214) says: "An interpretation clause which extends the meaning of a word does not take away its ordinary meaning . . . . . . Lord Selborne said in Robinson v. Barton Eccles Local Board, (1883) 8 App Case 798 (801): An interpretation clause of this kind is not meant to prevent the word receiving its ordinary, popular, and natural sense whenever that would be properly applicable, but to enable the word as used in the Act .... to be applied to something to which it would not ordinarily be applicable." Therefore, the inclusive part of the definition cannot prevent the main provision from receiving its natural meaning. 17.7. In the case of M/s.Mahalakshmi Oil Mills v. State of Andhra Pradesh, AIR 1989 SC 335, the Apex Court accepted the contention of the State that the definition which consisted of two separate parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e qualification by expressions like "unless the context otherwise require"; or "unless the contrary intention appears"; or "if not inconsistent with the context or subject matter". "Parliament would legislate to little purpose", said Lord Macnaghten in Netherseal Co. V. Bourne, (1889) 14 AC 228, "if the objects of its care might supplement or undo the work of legislation by making a definition clauses of their own. People cannot escape from the obligation of a statute by putting a private interpretation on its language." The courts will always examine the real nature of the transaction by which it is sought to evade the tax. (underlined supplied) 18. Bearing in mind the above judicial pronouncements, if we revert back to the definition of the term input service , as already noticed, it is coined in the phraseology of means and includes . Portion of the definition which goes with the expression means, is any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. This definition itself is wide in its expression and includes large number of services used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not qualify as an input service within the definition of rule 2(l). We may only notice two things in this regard. Firstly, in our view, when we find that outward transport service is covered by the main body of the definition which provides for means part, as specifically including any service directly or indirectly in or in relation to manufacture of final product or clearance of final product from the place of removal, no interpretation of the later part of the definition would permit us to exclude such a service form the sweep of the definition. Secondly, we notice that the definition of the term input service came to be amended with effect from 1.4.08 and instead of words clearance of final products from the place of removal , the words clearance of final products upto the place of removal came to be substituted. What would be the position if the case had arisen after 1.4.08 is a situation we are not confronted with. We, therefore, refrain from making any observations in this regard. We, however, cannot help noticing the change in the statutory provisions which is at the heart of the entire controversy. In so far as the cases on hand are concerned, the statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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