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TMI Blog2006 (3) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... "). Passed by the Assistant Commissioner, Central Excise Division Kota (here-in-after referred to as the "Adjudicating Authority "). 2. Brief facts of the appeal are that the appellant are engaged in the manufacture of various excisable goods like cement, caustic soda, PVC, PVC compound, calcium carbide etc. They were availing Cenvat credit on inputs, capital goods as well as on inputs services for payment of Central Excise duty in terms of provisions of Cenvat Credit Rules 2004. It was observed that the appellant had taken Cenvat Credit of service tax in respect of security services and photography service as input service during the period from 31-10-2004 to 27-1-2005 and from 31-1-2005 to 23-2-2005 amounting to Rs.79,518/- and amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (174) E.L.T. 417 (S.C.). Their submissions are as under: (A) That the adjudicating authority did not interpret the definition of 'input service' under Rule 2(1) in its true import and meaning and intent. This definition should be interpreted in the widest possible manner. For the sake of convenience the definition of 'input service' is reproduced and explained as under: (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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Distinction between the services used in manufacture and service used in relation to manufacture is too thin. However, there are few services such as advertisement or sales promotion, share registry, etc which are not at all used either directly or indirectly in or in relation to manufacture of final products. These services are in the nature of post manufacturing activities or activities in relation to other aspects of the business. Thus, the definition of 'input service' is very wide. It not only includes the services used in the manufacture of final products but also services used in post manufacturing activities or activities which are necessary to run the day to day business. The definition of 'input service' under Rule 2(I)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining to manufacture or provision of output service'. Thus, all input services used in activities relating to business are 'input service', whatever may be the purpose. It may be relevant to point that under the definition of Rule 2(1) of the Rules under its inclusive provision "credit rating, share registry, and security" are mentioned and are separated by punctuation '(,)'. It clearly conveys the intent of legislator in using and treating these terms separately and independently so that meaning of a preceding or subsequent word may not be imported for the interpretation of the other word. The learned Assistant Commissioner, Central Excise, Kota has failed to follow this intent of legislature while interpreting the definition of 'input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished legal position laid down by the Hon'ble Supreme Court in lchalkaranji Machine Center Pvt. Ltd. v. CCE - 2004 (174) E.L.T. 417, where it observed that: "MODVAT is basically a duty-collecting procedure, which aims at allowing relief to a manufacturer on the duty element borne by him in respect of the inputs used by him." The Court further observed that: "The object of the Modvat (now CENVAT) scheme was to reduce cost of final product by taking credit for the duty paid on the inputs." 4. I have carefully gone through the records and submissions made by the appellant in their appeal memo and further the submissions made during the course of personal hearing. I find that adjudicating authority has ordered to reverse CENVAT Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices and photography which are part and partial of in relation to manufacturing activity and expenditure incurred on these services including service tax has been added in total cost of the final product thus Cenvat Credit is admissible to the appellants. In or in relation to the manufacture means, the input has been used during a process while manufacturing the product. The input need not form part of final product. Thus the terms in or in relation to manufacture is very wide terms and covers all service inputs which have direct or indirect nexus with the manufacturing process. I also agree that if Cenvat Credit is not permitted, the cost of production of final product would carry the service tax element in the assessable value and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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