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TMI Blog2013 (12) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... quotation for procurement as well as marketing, dispatch instructions, issuing cheques for procurement, sending stock transfer documents to depots, receiving dispatch instructions from marketing/depots/head office, etc., were held to be ‘input services’ - Cenvat Credit paid on courier service utilized for dispatching their final product was also eligible for credit – Decided in favour of Assessee. - Appeal No.E/2429/2011-SM(BR) - FINAL ORDER NO.58336/201 - Dated:- 26-11-2013 - Mr. Manmohan Singh, J. For the Appellant: Shri Dileep Poolakkot, Advocate For the Respondent: Shri M.S. Negi, DR JUDGEMENT PER: MANMOHAN SINGH This appeal is filed by appellants against Order-in-Appeal No. IND/App/212/2011 dated 31.05.2011 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final products ad clearance of final products from the place of removal. The second part of the first leg which deals with manufacturer stipulates that input service should be that which is used directly or indirectly (a) in or in relation to the manufacture of the final products and (b) for clearance of final products from the place of removal. The basic criteria to be examined for qualifying any service to be an input service , is that the first leg of the definition should be satisfied. For an output service provider services which are used for providing such output service will constitute input service, whereas for a manufacturer services which are either used in or in relation to the manufacture of the final products or which are us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inclusive part of the definition, if anything is to be called as activities relating to business it should be one of the eleven categories specifically provided there under or at least it should be an activity of similar nature. 7. Any indirect service used by the manufacturer which are essential for the production of finished product would fall within the purview of the definition of input service can only be accepted if such services are used in or in relation to the manufacture of such final product. In the instant case the service tax paid on courier Service cannot be accepted as input service as the said service is not an essential activity required for the production of finished goods Moreover, the usage of a courier Service c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsus Subdaram Brake Linings Ltd. reported in 2010 (019) STR 0172 (Tri.- Chennai), wherein the Tribunal held that, Assessee has claimed credit of service tax paid on outdoor catering service claiming the same to be input service used in or in relation to various manufactured excisable goods. Cenvat Credit not permissible on mere inclusion of value of an item in assessable value of final product. Food items supplier not inputs for finished goods. Credit permissible only when service used in or in relation to manufacture of finished excisable goods and impugned service not satisfying such test. Cenvat Credit not permissible unless tests laid down by Supreme Court in said decision (Maruti Suzuki Ltd. Vs. Commissioner-2009 (240) ELT 0641 (S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBEC had taken a broad interpretation to cover all services which were used in relation to the business of manufacturing the final products. 12. They also referred to Hon ble Tribunal s judgments. (a) Keltech Energies Ltd. V/s CCE, Mangalore [2008 (10) STR 280 (Tri.- Bang.)], (b) CCE Vs. Steelcast Ltd [2009 (13) STR 696 (Tri.-Ahmd.)] 13. Regarding courier service, they referred to CCE Vapi Vs. Apar Industries LTd. [2010 (20) STR 624 (Tri.-Ahmd.)] With regard to courier services, the Commissioner (Appeals) ought to have appreciated that in CCE, Vapi Vs. Apar Industries Ltd. [210 (20) STR 624 (Tri.-Ahmd.], it was held that courier services used for placing orders, filing quotation for procurement as well as marketing, dispatch instr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing quotation for procurement as well as marketing, dispatch instructions, issuing cheques for procurement, sending stock transfer documents to depots, receiving dispatch instructions from marketing/depots/head office, etc., were held to be input services . Same has been followed in Cadila Healthcare Ltd. Vs. CCE Ahmedabad [2010 (17) STR 134 (Tri.-Ahmd.)]. 19. In CCE Vs. Universal Cables Ltd. 2007 (5) STR 142 (Tri.-New Delhi) it is held by Tribunal that Cenvat Credit paid on courier service utilized for dispatching their final product was also eligible for credit. 20. Thus it is found that as per scope prescribed above, input service credit is available in courier service. In view of above, appeal is allowed. (Pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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