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TMI Blog2019 (5) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of input service even after amendment from 01.04.2011 includes any service used by the manufacturers directly or indirectly and in or in relation to manufacture of final product - Further, perusal of the invoices placed on record clearly shows that all the services have been used for fabrication and erection of various equipment and machinery and has not been used for setting up of the plant or civil structure. In the case of M/S. DEEPAK FERTILIZERS AND PETROCHEMICALS CORPORATION LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE [ 2013 (4) TMI 44 - BOMBAY HIGH COURT] , the Hon ble High Court of Bombay held that the expression directly and indirectly and in or in relation to manufacture of final products used in the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of ₹ 2,08,231/- along with interest with proposal of penalty. The Superintendent of Central Excise vide Order-in-Original dated 10.03.2017 confirmed the demand of the CENVAT credit of ₹ 2,08,231/- along with appropriated interest and imposed a penalty of ₹ 20,823/-. Aggrieved by the said, the appellant filed appeal before the Commissioner (A) who rejected the same. 3. Heard both the parties and perused the records. 4. Learned Counsel for the appellants submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the definition of input service as contained in Rule 2(l) of CCR, 2004. He further submitted that as per the CCR, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he material on record, I find that CENVAT credit has been denied on the input services only on the ground that the same falls within the exclusion of input service being in relation to setting up of the plant which is excluded from the definition of input service w.e.f. 01.04.2011. Further, I find that in the present case, the impugned services have been used not for initial setting up of the plant but they have been used in fabrication, erection and installation services of equipment like Hoppers, Chutes, Ducts and Air Tubes and not used for setting up of a factory or office building or for laying foundation. Further, I find that the definition of input service even after amendment from 01.04.2011 includes any service used by the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer 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 directly or indirectly, in or in relation to the manufacture of final products. The words directly or indirectly and in or in relation to are words of width and amplitude. The subordinate legislation has advisedly used a broad and comprehensive expression while defini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reas 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 present case were used by the appellant whether directly or indirectly, in or in relation to the manufacture of final products. The appellant, it is undisputed, manufactures dutiable final products and the storage and use of ammonia is an intrinsic part of that process. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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