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TMI Blog2016 (9) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by M/s Parle Products Pvt. Ltd (herein after called as M/s PPPL) as per the Agreement between the Appellant- assessee and M/s PPPL. The Assessee had availed CENVAT Credit on inputs, capital goods and Input services i.e inward and outward freight (GTA Service) on transport of goods by road and utilized the said credit towards payment of Central Excise duty on the manufactured biscuits on behalf of M/s Parle Products Pvt. Ltd. Show cause cum demand notices were issued from time to time for recovery of CENVAT Credit availed on the said input service. The demands were confirmed and penalty imposed by the Adjudicating Authority. On appeals carried out from the said orders before the learned Commissioner (Appeals), the same were rejected by the learned Commissioner (Appeals). Hence, the present Appeals by the assessee. 3. In relation to the appeals filed by the Revenue, on some set of facts, but for different periods, against confirmation of the demands by the Adjudicating Authority, appeals had been filed by the assessee before the Ld. Commissioner (Appeals), who rejected the same for non-compliance with the provisions of Section 35F of Central Excise Act, 1944. Hence, on further a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Gujarat High Court in the case of CCE Vs Parth Poly Wooven Pvt. Ltd. 2012 (25) STR 4 (Guj). Further, responding to the Revenue s appeals, the learned Advocate has submitted that after analyzing the evidences on record and the principles laid down in the Larger Bench decision in ABB s case(supra) , the learned Commissioner (Appeals) had allowed the CENVAT Credit of Service Tax paid on inward freight as well as outward freight during the relevant period. Revenue has come in appeal on the grounds that there has been no arrangement/agreement between the Assessee and M/s PPPL to discharge the Service Tax on the said GTA service and the Larger Bench judgment in ABB Ltd. s case has not been accepted by the Revenue. She submitted that specific agreement between the Assessee and M/s PPPL has been made in this regard which has been communicated to the Range Superintendent on 15.09.2001, and the applicable excise duty on the finished goods and service tax on GTA service has been paid, therefore, Revenue s appeals are devoid of merit. 5. Per Contra, the learned Authorized Representative for the Revenue has submitted that the biscuits manufactured by the Assessee on job work basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal in similar facts circumstances in M.P. Biscuits Pvt. Ltd. s case(supra), after analyzing the relevant agreement, observed as follows:- "11. Reading of above provision clearly show that outward transportation of the manufactured product up to the place of removal falls within the definition of input service. The appellant has placed on record the authorization letter dated 15-3-2005 addressed by PBPL to Assistant/Deputy Commissioner, Central Excise, Varanasi authorising the appellant to manufacture biscuit on their behalf. Further perusal of the terms and conditions mutually agreed upon between PBPL and the appellant would show that as per the job work contract the appellant were required to process and manufacture biscuit, carry out inspection, packing and delivery to various depots of PBPL located all over the country as directed by PBPL. From the above stipulation in the contract, appellants were under obligation to transport biscuits to various depots of PBPL as such obviously the place of removal was/were depots where the appellant was required to supply manufactured biscuit as per direction of the appellant. Admittedly, the appellants have transported the goods to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... includes . Portion of the definition which goes with the expression means, is any service 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. This definition itself is wide in its expression and includes large number of services used by the manufacturer. Such service may have been used either directly or even indirectly. To qualify for input service, such service should have been used for the manufacture of the final products or in relation to manufacture of final product or even in clearance of the final product from the place of removal. The expression in relation to manufacture is wider than for the purpose of manufacture . The words and clearance of the final products from the place of removal are also significant. Means part of the definition has not limited the services only upto the place of removal, but covers services used by the manufacturer for the clearance of the final products even from the place of removal. It can thus be seen that main body of the definition of term input service is wide and expansive and covers variety of services utilized by the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had arisen after 1-4-2008 is a situation we are not confronted with. We, therefore, refrain from making any observations in this regard. We, however, cannot help noticing the change in the statutory provisions which is at the heart of the entire controversy. In so far as the cases on hand are concerned, the statutory provisions cover the service used by the manufacturer in relation to the manufacture of the final products or even the clearance of final products from the place of removal. 21. We must, however, for our curiosity reconcile the expression from the place of removal occurring in the earlier part of the definition with words upto the place of removal used in inclusive part of the definition. Counsel for the assessees submitted that when a manufacturer transports his finished products from the factory without clearance to any other place, such as godown, warehouse etc. from where it would be ultimately removed, such service is covered in the expression outward transportation up to the place of removal since such place other than factory gate would be the place of removal. We do appreciate that this could be one of the areas of the application of the expression outward tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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