9911796707
TMI Blog2014 (4) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... em 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 to them for recovery of the dues adjudged vide letter dated 4.7.2013. Immediately thereafter on 8.7.2013 they had intimated the department that they had not received the said o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued demanding Service Tax of Rs.95,25,997/- for the period 2007-2008 to 2011-12 along with interest thereon and also proposing to impose penalties. The matter was contested by the appellant. However, the adjudicating authority confirmed the Service Tax demand by holding that the activity of seizing by engaging services of a recovery agent is not an input service for the lending money by the appellant and hence, does not come within the purview of input service as defined under Rule 2(l) of the Cenvat Credit Rules, 2004. Accordingly, he confirmed a Service Tax demand of Rs.95,25,997/- and ordered recovery thereof along with interest thereon and also imposed an equivalent amount of penalty under Section 78 of the Finance Act, 1994. Aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; (ii) Any service used by the manufacturer whether directly or indirectly, in or in relation to clearance of final products from the place of removal (iii) Services used in relation to setting up, modernization, renovation or repairs of a factory, or an office relating to such factory, (iv) Services used in relation to advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, (v) Services used in relation to activities relating to business and outward transportation upto the place of removal; Each limb of the definition of input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If it fell within any one head of exemption, it would 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice". The services covered under the inclusive part of the definition of input service are services which are rendered prior to the commencement of manufacturing activity (such as services for setting up, modernization, renovation or repairs of a factory) as well as services rendered after the manufacture of final products (such as advertisement, sales promotion, market research etc.) and includes services rendered in relation to business such as auditing, financing etc. Thus, the substantive part of the definition "input service" covers services used directly or indirectly in or in relation to the manufacture of final products, whereas the inclusive part of the definition of "input service" covers various services used in relation to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 input service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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