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TMI Blog2013 (8) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in holding that the appellant would not be entitled to avail of CENVAT credit in respect of services utilized in relation to ammonia storage tanks 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 - Whereas Rule 3(1) allows a manufacturer of final products to take credit of excise duty and service tax among others paid on any input or capital goods received in the factory of manufacture of the final product, insofar as any input service is concerned, the only stipulation is that it should be received by the manufacturer of the fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid by them. Further, the respondents had neither furnished the details nor produced any documents/invoices to the department on the basis of which they had taken such credit and hence such wrongly availed by the respondents. 3. Show cause notice was issued for the demand of the said cenvat credit availed by the appellant with the proposition of interest and also imposition of penalty. Adjudicating authority after following the due process of law, confirmed the demands with interest and also imposed penalties. Aggrieved by such an order, the respondents preferred an appeal before the first appellate tribunal. The first appellate tribunal after considering the submissions made before him during the personal hearing and also the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing both sides and perusal of the records, I find that the issue to be decided in this case is whether the impugned order of the first appellate tribunal in allowing the cenvat credit to the appellant of the service tax paid on rent, maintenance and security services is correct or not. I find from the records that there is no dispute as to the discharge of service tax by provider in this case and there is also no dispute as regards the invoices and receipt of services by the recipient. I find that, as correctly pointed out by the ld. counsel, the judgment of Hon'ble High Court of Bombay in the case of Deepak Fertilizers and Petrochemicals Corporation Ltd. (supra) is directly on the issue. I find that in that case, the Tribunal has held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 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 (I) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tribunal, proceeded to interpret the inclusive part of the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput 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.
7. It can be seen from the above reproduced ratio from the judgment of Hon'ble High Court of Bombay, the issue is squarely covered in favour of the respondent.
8. In view of the foregoing and respectfully following the judicial pronouncement, I find that the impugned order is correct and legal and does not require any interference. Appeal filed by the Revenue is rejected.
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