9911796707
TMI Blog2014 (5) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... as all material aspects are concerned, the entire issue has been discussed threadbare and decided in the above-mentioned judgment in the case of Gujarat Heavy Chemicals Ltd. As already noted, in the case of Gujarat Heavy Chemicals Ltd., the Court was considering the eligibility of the manufacturer to avail Cenvat credit on the Service Tax credit on security services in residential colony of the Company. In the present case, the issue presented before us pertains to Service Tax credit on insurance of the vehicles. We may notice that such vehicles are used only for the residents of the colony and not for the business purpose of the Company. - assessee would not be entitled to Cenvat credit on Service Tax paid on such services - Decided agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices are not used directly or indirectly in the manufacture of the final product and upheld the assessee's contention that the phrase "activities relating to business" as appearing in the inclusive part of the definition of input service is wide enough to cover such services. The Tribunal distinguished the decision of the Apex Court in the case of Maruti Suzuki Ltd. [2009 TIOL-94-SC-DX = 2009 (240) E.L.T. 641 (S.C.)]. The Tribunal placed reliance on the decision of the Delhi Bench in the case of M/s. Triveni Engg. & Industrial Ltd. v. CCE, Meerut, 2008 (12) S.T.R. 330 (Tri-Del.). 4. Counsel for the Revenue submitted that services cannot be stated to be utilized for manufacturing of final product. He submitted that the same would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Bom.). He pointed out that the Tribunal in the impugned judgment has placed reliance on a decision of Bombay Tribunal in the case of Manikgarh Cement v. Commissioner of C. Ex. & Customs, Nagpur reported in 2008 (9) S.T.R. 554 (Tri.-Mumbai) which was reversed by the Bombay High Court in the case of Manikgarh Cement (supra). Counsel also relied on the decision of the Apex Court in the case of Maruti Suzuki Ltd. v. CCE, Delhi, 2009 (240) E.L.T. 641 (S.C.). 8. On the other hand, counsel for the respondent assessee contended that the definition of the term 'input service' contained in section 2(l) of the Cenvat Rules is sufficiently wide to include range of services used by the manufacturer for and or in relation to business. Counsel poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of final products and clearance of final products from 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 relation 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;" 10. Definition of input service is expressed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Manikgarh Cement (supra). 12. We may notice that the Apex Court in the case of Maruti Suzuki Ltd. (supra) was of the opinion that the electricity generated by the assessee and cleared to grid for distribution would not be part of manufacturing activity and be categorized as input used in manufacture of final product. We are conscious that the said decision of the Apex Court is referred to Larger Bench. However, at this stage, the ratio laid down therein prevails. 13. In the case of Ultratech Cement Ltd. (supra), on which counsel for the respondent has placed heavy reliance, the Bombay High Court was considering outdoor catering service provided by the employer for its employees. It was a case wherein to provide for the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
