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TMI Blog2013 (4) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the Appellants would not be entitled to credit of service tax paid on input services received for setting up of storage tanks; ii) Whether in the facts and circumstances of the case, the Appellate Tribunal was correct and justified in holding that services used in relation to storage of inputs outside the factory will not be eligible for credit as services are received outside the factory." 2. The appeal is admitted on the above substantial questions of law. By consent, the Appeal is taken up for hearing and final disposal. 3. The Appellant is engaged in the manufacture of excisable goods which fall under Chapters 28, 29 and 31 of the Central Excise Tariff Act 1985. The Appellant has installed storage tanks for storing ammon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004." The expression 'input service' is defined in Rule 2(l) as follows : "(I) "input service" means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, upto the place of removal, and includes services used in relation to setting up modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the ground that they were situated outside the factory of production. The definition of the expression 'input service' covers any services used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. The words 'directly or indirectly' and 'in or in relation to' are words of width and amplitude. The subordinate legislation has advisedly used a broad and comprehensive expression while defining the expression 'input service'. Rule 2(l) initially provides that input service means any services of the description falling in sub clause (i) and (ii). Rule 2(l) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the manufacturer of the final product. This must be read with the broad and comprehensive meaning of the expression 'input service' in Rule 2(l). The input services in the present case were used by the Appellant whether directly or indirectly, in or in relation to the manufacture of final products. The Appellant, it is undisputed, manufactures dutiable final products and the storage and use of ammonia is an intrinsic part of that process.
6. For these reasons, we have come to the conclusion that the judgment of the Tribunal is ex facie unsustainable. The questions of law as framed are accordingly answered in the negative. The Appeal is accordingly allowed. There shall be no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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