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TMI Blog2014 (4) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be eligible input service - stay granted partly. - Appeal No.ST/88910/2013 & ST/S/98324/2013 - Stay Order No. S/113/2014-WZB/C-I(CSTB) and Misc. Order No. M/421/2014-WZB/C-I(CSTB) - Dated:- 28-1-2014 - Mr. P R Chandrasekharan and Mr. Anil Choudhary, JJ. For the Appellant : Shri A Hidayatullah, Sr. Adv., M P S Joshi, Adv. For the Respondent : Shri S G Dewalwar, Addl. Commissioner (AR) JUDGEMENT Per: P R Chandrasekharan: An application for condonation of delay of 110 days has been filed by the appellant M/s Bajaj Finance Ltd. on the ground that the impugned order was in fact received by them only on 20.9.2013 and immediately thereafter they have filed the appeal on 26.9.2013. However, the impugned order dated 26.2.2013 appears to have been sent by the department on 28.2.2013 and as per the postal authority's letter dated 28.8.2013 produced by the Revenue the order has been served on the appellant on 9.3.2013. 2. The learned Counsel submits that they had changed the address of the corporate office and due to change of address, the copy of the order could not be received. The appellant came to know about the order when the Revenue authorities wrote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994. Aggrieved of the same, the appellant is before us. 6. The leaned Counsel for the appellant makes the following submissions: As per the definition of input services' under Rule 2(l), the same also 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, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. The said definition was examined in detail by the Hon'ble High Court of Bombay in the case of Coca Cola India Pvt. Ltd. Vs. Commissioner of Central Excise, Pune-III - 2009 (242) ELT 168 (Bom) and the Hon'ble High Court in para 29 of the said decision held as follows:- 39. The definition of input service which has been reproduced earlier, can be ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be free from tax notwithstanding that the conditions of another head of exemption are not satisfied and such income is not free from tax under that head of exemption. [Emphasis supplied] The Hon'ble High Court further affirmed the said view in the case of Ultratech Cement Ltd. - 2010 (260) ELT 369 (Bom) as follows:- 27. The definition of input service as per Rule 2(1) of 2004 Rules (insofar as it relates to the manufacture of final product is concerned), consists of three categories of services. The first category, covers services which are directly or indirectly used in or in relation to the manufacture of final products. The second category, covers the services which are used for clearance of the final products up to the place of removal. The third category, includes services namely; a) Services used in relation to setting up, modernization, renovation or repairs of a factory, b) Services used in an office relating to such factory, c) Services like advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, d) Activities relating to bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rule 2(1) of the 2004 Rules. In view of the above, the definition of input service is very wide and includes the variety of services, which are required to run a business and as far as their business of money lending for purchase of vehicle is concerned, the recovery forms the important part and, therefore, the Service Tax paid on seizing charges by the recovery agents is eligible to be taken as credit under the Cenvat Credit Rules. Therefore, the impugned demands are not sustainable in law. Accordingly, he pleads for grant of stay. 7. The learned Addl. Commissioner (AR) appearing for the Revenue on the other hand submits that the activity of recovery is after the lending of money has taken place and, therefore, it cannot be construed that the recovery agent has been engaged for the lending activity undertaken by the appellant and, therefore, the services rendered by the recovery agent cannot constitute input service as defined under Rule 2(l) of the Cenvat Credit Rules. He further submits that the recovery service rendered by the recovery agent is not explicitly mentioned in the inclusive part of definition of input service and it is also not in the nature of various in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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