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TMI Blog2016 (7) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... ture is not sustainable - the scope of input services as given under Rule 2 (l) of Cenvat Credit Rules, 2004 is not restricted to the location of the factory premises alone. - credit allowed - Decided in favor of assessee. - Excise Appeal Nos. 50495 and 50487 of 2016 (SM) - Final Order No. 52240-52241/2016 - Dated:- 28-6-2016 - Shri B. Ravichandran, Member (Technical) Shri B.L. Narsimhan and Ms. Sukriti Das, Advocates - for the appellant. Shri Dharmendra Singh, Authorized Representative (DR) - for the Respondent. ORDER These two appeals are taken up together for decision as the issue involved are similar. The appellants are engaged in the manufacture of zinc and other products liable to Central Excise duty. They have o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corpn. Ltd. vs. CCE, Belapur reported in 2013 (32) S.T.R. 532 (Bom.) and in CCE, Aurangabad vs. Endurance Technology Pvt. Ltd. reported in 2015 - TIOL - 1371 - HC - MUM - ST. Tribunal in Parry Engg. Electronics P. Ltd. vs. CCE ST, Ahmedabad - I, II, III reported in 2015 (40) S.T.R. 243 (Tri. - LB) followed the same ratio to decide the credit eligibility. 4. The learned AR reiterated the findings of the lower Authorities. He submitted that the pipelines used for transport of water has no direct connection with the manufacturing process of concentrated ore. The service tax paid on laying of such pipeline has no direct nexus to the process undertaken by the appellants. 5. Heard both the sides and examined appeal records. The point fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on any input or capital goods received in the factory of manufacture of the final product. Such a restriction, however, is not imposed in regard to input services since the only stipulation in clause (ii) is that the input services should be received by the manufacturer of the final product. Hence, even as a matter of first principle on a plain and literal construction of Rule 3(1) the Tribunal was not justified in holding that the appellant would not be entitled to avail of Cenvat credit in respect of services utilized in relation to ammonia storage tanks on the ground that they were situated outside the factory of production. The definition of the expression input service covers any services used by the manufacturer, whether direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were intended to be brought within the purview of Rule 2(l). Rule 2(l) must be read in its entirety. The Tribunal has placed an interpretation which runs contrary to the plain and literal meaning of the words used in Rule 2(l). Moreover as we have noted earlier, whereas Rule 3(1) allows a manufacturer of final products to take credit of excise duty and Service Tax among others paid on any input or capital goods received in the factory of manufacturer of the final product, insofar as any input service is concerned, the only stipulation is that it should be received by the manufacturer of the final product. This must be read with the broad and comprehensive meaning of the expression input service in Rule 2(l).The input services in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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