2016 (12) TMI 1460

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..... urangabad Vs. Endurance Technology Pvt. Ltd. 2015-TIOL-1371-HC-MUM-ST wherein the Hon'ble High Court has framed the following issue: "Whether the CESTAT is correct in holding that the assessee is entitled to avail the CESTAT credit on management, maintenance or repair services provided on services provided to windmills installed and situated away from factory and factory premises?" 4. Thereafter the Hon'ble High Court has observed as under: "On perusal of these rules, it becomes clear that the management, maintenance and repair of windmills installed by the respondents is input service as defined by clause I of Rule 2. Rule 3 and 4 provide that any input or capital goods received in the factory or any input service received by a manufa .....

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..... e Tribunal, proceeded to interpret the inclusive part of the definition and held that the Legislature restricted the benefit of Cenvat credit for input services used in respect of inputs only to these two categories viz. for the procurement of inputs and for the inward transportation of inputs. This interpretation which has been placed by the Tribunal is ex facie contrary to the provisions contained in Rule 2(l). The first part of Rule 2(l) inter alia covers any services used by the manufacturer directly or indirectly, in or in relation to the manufacture of final products. The inclusive part of the definition enumerates certain specified categories of services. However, it would be farfetched to interpret Rule 2(l) to mean that only two ca .....

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..... sed." 5. In this case also the appellant has received certain input services in their is search and development unit, although the same is located outside the factory premises but these services are ultimately used for manufacturing of final product. Therefore, these services are in relation to manufacturing of their final product and as held by the Hon'ble High Court in the case of Endurance Technology Pvt. Ltd. (Supra), I hold that appellant is entitled to avail Cenvat Credit on input services which has been used outside the factory premises but in relation to manufacture of their final product. Therefore, appellant is entitled to avail Cenvat Credit. 6. Appeal is allowed in above terms. [ Dictated and Pronounced in the open Court ]

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