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TMI Blog2023 (5) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... ll fall within the means clause of the definition of input service , which has been held to be wide enough to allow cenvat credit of services used in or in relation to manufacture whether directly or indirectly. Appeal allowed. - Excise Appeal No. 75147 of 2019 - FINAL ORDER NO. 75358/2023 - Dated:- 8-5-2023 - HON BLE MR. R. MURALIDHAR , MEMBER ( JUDICIAL ) Mr. Saurabh Bagaria Rishi Raju both Advocate for the Appellant Mr. S. S. Chattopadhyay, Authorized Representative for the Respondent ORDER PER R. MURALIDHAR The Appellant is a manufacturer of various types of Gases falling under Chapter 28 of the CETA, 1985. The Company is in existence since 1935. In the year 2014, they have established further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra, the issue was identical and the Tribunal has held as under:- 4. On examination of the monthly ER-1, it was noticed that the appellant had availed the cenvat credit on input services which were actually used by them in the setting up of their new unit MGU which is not admissible after amendment of the definition of input service w.e.f 01.04.2011. On examining the details, it was observed that the appellant had included all the bills and payments made from October 2013 to 03.02.2014 in respect of various services specified though the commercial production started only from 24.02.2014, which means that they were used by them in setting up of the new unit, namely MGU. Accordingly, Show Cause Notice dated 3 26.08.2015 was issued for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e observations made by the Tribunal in the earlier decisions on the eligibility of cenvat credit after the amendment of the definition of 'input service', excluding the setting up process of a factory from the inclusive part of the definition, w.e.f. 01.04.2011. In the case of Hindustan Zinc Ltd., (supra) it has been held: 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 inclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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