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TMI Blog2018 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... tory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal - credit allowed - appeal dismissed - decided against Revenue. - E/60704/2017-EX[SM] - FINAL ORDER NO. 61998/2018 - Dated:- 26-3-2018 - Mr. Devender Singh, Member (Technical) Present for the Appellant(s): Mr. G.M. Sharma, A.R. Present for the Respondent(s): Mr. R. Krishnan, Advocate ORDER Per : Devender Singh This appeal has been filed by the Revenue against the impugned order dt. 12.06.2017 passed by the Commissioner (Appeals). 2. The main issue in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NTF (India) Pvt Ltd vs. CCE, Delhi-III - 2013 (30) STR 575 (Tri.-Delhi) 4. Heard both sides and perused the record. 5. As rightly pointed out by Ld. Advocate, the issue pertaining to admissibility of input service credit on construction service for factory/manufacturing plant is already settled by the judgment of the Hon ble High Court of Punjab Haryana in the case of CCE, Delhi-III vs. Bellsonica Auto Components India P. Ltd. (supra), wherein, the Court, while examining the issue, held as below: 8 . The land was taken on lease to construct the factory. The factory was constructed to manufacture the final product. The land and the factory were required directly and in any event indirectly in or in relation to the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lease rental is not for the use of the land in relation to the manufacture of the final product. 10 . This becomes clearer from the fact that by an amendment of the year 2011 to Rule 2(l), construction services were excluded from the definition of input service. The amended section in so far as it is relevant reads as under :- (l) input service means any service, - . .. . (ii) (A) specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for - (a) construction of a building or a civil structure or a part thereof; or Clause (105)(zzq) of Section 65 of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input service which has been reproduced earlier, can be effectively divided into the following five categories, in so far as a manufacturer is concerned : (i) Any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, (ii) Any service used by the manufacturer whether directly or indirectly, in or in relation to clearance of final products from the place of removal, (iii) Services used in relation to setting up, modernization, renovation or repairs of a factory, or an office relating to such factory, (iv) Services used in relation to advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, (v) Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve society is exempt from tax what has to be seen is whether income fell within any of the several heads of exemption. If it fell within any one head of exemption, it would be free from tax notwithstanding that the conditions of another head of exemption are not satisfied and such income is not free from tax under that head of exemption. We are in respectful agreement with the judgment of the Bombay High Court. 13. We approve the findings of the Tribunal as well as the basis on which they have been arrived at. The Tribunal rightly did not agree with the Commissioner‟s findings that the services in question had been used for brining into existence an immovable property and not for the manufacture of the final product. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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