2015 (6) TMI 194

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..... vices availed by them since the services rendered have no nexus to the appellant's manufacturing activity and therefore fall outside the scope and ambit of input services as defined in Rule 2(l)(2) of the CENVAT Credit Rules, 2004. 2. Heard both the sides. 3. The issue involved in the present appeal is whether the appellants have satisfied the definition of input service for availing the CENVAT credit and whether the demand is barred by limitation. 4. According to the definition of input service as defined under Rule 2(l) of CENVAT Credit Rules (i) used by a provider of taxable service for providing an output service or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final produc .....

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..... ect nexus in providing output service. In other words, if the receipt or non-receipt of those services is not going to make any difference to the production of final products, then such services cannot be considered as input services." 7. For coming to this conclusion, he has relied upon the decision of the Tribunal in the case of CCE, Nagpur Vs. Manikgarh Cement Works - 2010 (18) S.T.R. 275 (Tri. - Mumbai). However, I find that in Manikgarh Cement case, the issue involved was eligibility of CENVAT credit on services received in respect of security services etc. provided to the residential colony and not to the factory or the premises of the appellant. In this case, the services are clearly covered by inclusive part of the definition which .....

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..... he case of Maruti Suzuki Ltd. (supra) while interpreting the scope of 'input service'. Accordingly, in the light of the judgment of the apex court in the case of Maruti Suzuki Ltd. (supra), we hold that the services having nexus or integral connection with the manufacture of final products as well as the business of manufacture of final product would qualify to be input service under Rule 2(l) of 2004 Rules. 9. In view of the above, I find that the appellant is eligible for the benefit of refund of CENVAT credit taken by them and therefore the impugned order has no merits and has to be set aside. Accordingly, the impugned order is set aside and appeal is allowed with consequential relief, if any, to the appellant. (Order pronounce .....

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