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TMI Blog2021 (7) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... rm manufacture itself is very wide and includes anything incidental or ancillary to manufacture - For a service to qualify as input service under CENVAT Credit Rules, 2004 post 2011, the service in question need not be covered even by the very wide definition of manufacture under section 2(f) of the Central Excise Act. Any service which is used not only in manufacture but also in relation to manufacture will also qualify as input service. The scope of input service is further enlarged with the expression whether directly or indirectly used in the definition of input service. Although setting up the factory is not manufacture in itself, it is an activity directly in relation to manufacture. Without setting up the factory, there cannot be any manufacture. Services used in setting up the factory are, therefore, unambiguously covered as input services under Rule 2 (l) (ii) of the CENVAT Credit Rules, 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. Once it is covered in the main part of the definition of input service, unless it is specifically excluded und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 018- Mondelez India Foods Pvt. Ltd. 4. The Appellant is engaged in the manufacture of Chocolates and other food preparations containing cocoa falling under CETSH 18063200 of the First Schedule to the Central Excise Tariff Act, 1985 [CETA]. It had entered into a lease and infrastructure deed agreement dated 07.08.2013 with M/s. Sri City Pvt. Ltd. [ Sri City ] for lease of 134.10 acres of land in Domestic Tariff Zone in Sri City, for a period of 99 years to enable setting up of a new manufacturing plant on the land. 5. As per clause 2 of the agreement, Sri City had provided various infrastructure facilities known as Common Infrastructure Facilities as follows: - a) Building a straight entry and exit road b) Upgrading Central Express Highway c) Upgrading the Raavi road to a complete, at least two-lane straight road, d) Providing pedestrian and bicycle walkways adjoining the Ravi Road to provide access from Central Express Highway to the lease land e) Providing adequate street lighting within Sri city and more particularly from the lease land and along the Central Express Highway and Raavi Road f) Providing parking spaces for trucks of the assessee within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of the final product. (c) On identical issue with respect to another unit set up in Sri City, in the case of Kellogs India Pvt. Ltd Vs. Commissioner of Central Tax, Tirupathi [ GST 2020 (7) TMI 414 - CESTAT Hyderabad ] , this Bench had held as under.: 11. Therefore, we find that the services used in relation to setting up of a plant are neither specifically included nor specifically excluded during the relevant period. That takes us to the main part of the definition which, with respect to manufacturer allows CENVAT credit of services used in or in relation to manufacture whether directly or indirectly. This definition, in our considered view, is wide enough to cover in its compass any services used for setting up a Plant especially when the services are used for obtaining the land on lease. Without such land no factory can be set up nor can any manufacture take place. We find a direct nexus between the manufacture of the final products and the services used for setting up of plant by leasing the land. (d) On the same issue, other Benches of this Tribunal have also taken the same view. They are as follows: i. CCE, Kolkata Vs. Texmaco UGL Rail Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final products upto the place of removal , and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services,- (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 (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reements to lease the land and to get various common facilities in the private industrial township called Sri City to set up their factories. It cannot be argued that manufacturing can take place without a factory nor can it be argued that a factory can be set up without the services in question. It is also not in dispute that M/s. Sri City, the service provider, paid service tax on the services. 15. The department wants to deny them the benefit of the CENVAT credit on the ground that services related to setting up of a factory which were specifically included prior to 1.4.2011 were no longer specifically included post 1.4.2011. 16. We find that the definition of input service prior to 1.4.2011 had two parts- a main part of the definition and an inclusive part of the definition. This inclusive part specifically included the services availed for setting up the factory. After 1.4.2011, it has three parts- a main part, an inclusive part and an exclusive part. The services used for setting up the factory are neither in the inclusive part of the definition nor the exclusive part of the definition. Therefore, such services were neither specifically included nor were specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is further enlarged with the expression whether directly or indirectly used in the definition of input service. Thus, there are: a) Actual manufacture; b) Processes incidental or ancillary to manufacture which are also manufacture; c) Activities directly in relation to manufacture (i.e., in relation to a and b above); d) Activities indirectly in relation to manufacture (i.e., in relation to a and b above); 22. All four of the above qualify as input service as per Rule 2(l) (ii) as applicable post 1.4.2011. Although setting up the factory is not manufacture in itself, it is an activity directly in relation to manufacture. Without setting up the factory, there cannot be any manufacture. Services used in setting up the factory are, therefore, unambiguously covered as input services under Rule 2 (l) (ii) of the CENVAT Credit Rules, 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. Once it is covered in the main part of the definition of input service, unless it is specifically excluded under the exclusion part of the definition, the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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