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TMI Blog2016 (9) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... E. & S.T., Ahmedabad-I,II,III [2016 (1) TMI 546 - CESTAT AHMEDABAD], we hold that the appellants are the receiver of the services rendered by the 3rd party job worker and the said services have been used directly or in directly in or in relation to the manufacture of motor vehicles chassis. Hence, the appellants are entitled to credit of service tax paid on the input services. In the case on hand, the goods, on which services were provided, instead of coming to the appellants factory were dispatched to another job worker of the appellants i.e. HVAL/HVTL. The definition of input services does not specify that the services should be received in the factory of the manufacturer. The condition to avail cenvat credit on input service is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TL and always belonged to the appellants. Copy of the job order placed by the appellants on HVAL and HVTL are available as Annexure 1 2 at pages 26-33 of the appeal paper book. 2. HVAL and HVTL never sold axles and gear boxes to the appellants, since they have undertaken the process of manufacture out of the raw materials supplied to them by the appellants. Since no sale is taking place on the transfer of axles and gear boxes from HVAL and HVTL to the appellants, no sales tax is charged from the appellants. Illustrative copy of the invoices of HVAL and HVTL are available as Annexure 3 4 at pages 34 and 35 of the Appeal paper book. 3. The appellants have also availed services of some 3rd party processors, who process the raw materials/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said services have been used directly or indirectly, in or in relation to the manufacture of final products i.e. motor vehicles and accordingly the appellants are entitled to credit of service tax paid on the input services. Ld. Counsel also filed a flowchart depicting the movement of raw materials to the various job workers for processing. He also submitted a paper book containing Cenvat Credit Rules, 2004, definition of input services, notifications and copy of various judgments in support of his submissions. He further submits that the Ld. Commissioner in the impugned order has totally ignored the expression services used by the manufacturer whether directly or indirectly, in or in relation to the manufacture of final product . It is a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable service of production of goods on behalf of the client referred in sub-clause(b) of Clause (19) of Section 65 of the Finance Act. Period of dispute is March, 2005 to March, 2006 and thereafter in view of the aforesaid notification the appellants are claiming exemption for the subsequent period. On this issue paragraphs 7.2 and 7.3 of the case law Endurance Technologies Pvt. Ltd.-vs.-Commr.of C.Ex., Aurangabad [2011(273)E.L.T.248(Tri.-Mumbai)] are relevant and are reproduced below: 7.2 Input services rendered for manufacture of wind mills for generation of electricity is not in dispute. The electricity so generated is used in the manufacture of final product. Therefore, the service falls under the definition of input service. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have direct nexus or which are integrally connected with the business of manufacturing the final product. In the case of Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd. - 2010-TIOL-1227- CESTAT-MUM = 2011 (21) S.T.R. 297 (Tri. - Mum.), this Tribunal has held that the denial of CENVAT credit on the ground that services were not received by the respondent in factory premises is not sustainable. 7.1. In the aforesaid decision it was held that services rendered outside the factory when have a nexus with the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to the manufacture of motor vehicles chassis. Hence, the appellants are entitled to credit of service tax paid on the input services. The definition of input services is very clear; that the receiver of service does not mean receiver of inputs. The Cenvat Credit Rules itself recognize the distinction between input and input services according to which it has been made mandatory to receive inputs in the factory of production to avail cenvat credit on inputs. There is no condition to avail cenvat credit on input services that services availed should be received by the service receiver/manufacturer in the registered premises. In the case on hand, the goods, on which services were provided, instead of coming to the appellants factor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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