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TMI Blog2015 (7) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... on or repairs of a factory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal. The Tribunal rightly did not agree with the Commissioner’s findings that the services in question had been used for brining into existence an immovable property and not for the manufacture of the final product. The said services cannot be said to be remotely connected to the final product as observed by the Commissioner. - Decided against assessee. - C.E.A. No. 58 of 2014 (O&M) - - - Dated:- 16-7-2015 - S. J. Vazifdar, Acting Chief Justice And G. S. Sandhawalia,JJ. For the Appellant : Mr. Sukhdev Sharma, Advocate For the Respondents : Mr. Amrinder Singh, Advocate JUDGMENT S. J. Vazifdar, Acting Chief Justice: This appeal under Section 35(G) of the Central Excise Act, 1944, challenges the order of the Customs, Excise and Service Tax Appellate Tribunal setting aside the order of the Commissioner disallowing the assessees/respondents Cenvat Credit in the sum of ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 2(l)(ii) and rule 3(1)(ix) of the Cenvat Credit Rules, 2004, in so far as they are relevant, read as under:- Definitions. 2. In these rules, unless the context otherwise requires,- (a) to (k) .. .. (l) input service means any service,- (i) . .. (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, upto 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 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. CENVAT credit. 3.(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the definition as the phraseology is wide enough to cover the said services, the same being directly or indirectly or in any event in relation to the manufacture of the respondents final product. 8. The land was taken on lease to construct the factory. The factory was constructed to manufacture the final product. The land and the factory were required directly and in any event indirectly in or in relation to the manufacture of the final product and for the clearance thereof up to the place of removal. But for the factory the final product could not have been manufactured and the factory needed to be constructed on land. The land and the factory are used by the manufacturer in any event indirectly in or in relation to the manufacture of the final product, namely, metal-sheets. The respondents case, therefore, falls within the first part of Rule 2(l) aptly referred to by Mr. Amrinder Singh as the means part . 9. The respondents case also falls within the second part of Rule 2(l) i.e. the inclusive part. The definition of the words input service also specifically includes the services used in relation to setting up of a factory. Mr. Amrinder Singh rightly contended tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dment the setting up of a factory premises of a provider for output service relating to such a factory fell within the definition of input service . The amendment of 2011 is not retrospective and is not applicable to the respondents case. 12. Our view is supported by the judgment of a Division Bench of the Bombay High Court in Coca Cola India Pvt. Ltd. vs. Commissioner of C. Ex., Pune-III, 2009 (242) E.L.T. 168 (Bom.). The Division Bench construed Section 2(l) as follows:- 39. The definition of input service which has been reproduced earlier, can be effectively divided into the following five categories, in so far as a manufacturer is concerned: (i) Any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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