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TMI Blog2024 (6) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 between March 2008 and November 2012 by recourse to section 11A of Central Excise Act, 1944, along with applicable interest under section 11AA of Central Excise Act, 1944, besides penalty of like amount imposed under section 11AC of Central Excise Act, 1944 and of Rs. 5,000 under rule 27 of Central Excise Rules, 2002. The impugned order [order-in-original no. 36/COMMR/M-III/WLH/2013-14 dated 6th December 2013] of Commissioner of Central Excise, Mumbai-III has held that these were procured for all the assessees in the factory premises but taken entirely by the transformer division, that the recipient in the records was 'central service division' and that the impugned services do not conform to confirm to the definition of 'input service' i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyer to keep the factory without contravening any of those laws. That apart, now the concept of corporate social responsibility is also relevant. It is to discharge a statutory obligation, when the employer spends money to maintain their factory premises in an eco-friendly, manner, certainly, the tax paid on such services would form part of the costs of the final products. In those circumstances, the Tribunal was right in holding that the service tax paid in all these cases would fall within the input services and the assessee is entitled to the benefit thereof. In that view of the matter, we do not see any infirmity in the order passed by the Tribunal. Accordingly, the substantial questions of law framed in this appeal are answered in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the question is, whether outdoor catering services are covered under the inclusive part of the definition of "input service". The services covered under the inclusive part of the definition of input service are services which are rendered prior to the commencement of manufacturing activity (such as services for setting up, modernization, renovation or repairs of a factory) as well as services rendered after the manufacture of final products (such as advertisement, sales promotion, market research etc.) and includes services rendered in relation to business such as auditing, financing ........ etc. Thus, the substantive part of the definition "input service" covers services used directly or indirectly in or in relation to the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the definition of "input' is restricted to the inputs used in or in relation to the manufacture of final products, whereas the inclusive part of the definition of input service extends to services used prior to/during the course of/after the manufacture of the final products. The fact that the definition of "input service' is wider than the definition of "input' would make no difference in applying the ratio laid down in the case of Maruti Suzuki Ltd. (supra) while interpreting the scope of 'input service'. Accordingly, in the light of the judgment of the Apex Court in the case of Maruti Suzuki Ltd. (supra), we hold that the services having nexus or integral connection with the manufacture of final products as well as the business of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its factory premises. 7. Having regard to the aforesaid, to our minds, the ratio of the judgments rendered in Commissioner of Central Excise and Service Tax v. Rane TRW Steering Systems Limited, 2015 (39) STR. 13 (Mad.) and in Commissioner of Central Excise, Bangalore-II v. Millipore India Pvt. Ltd., 2012 (26) STR. 514 (Kar.), would apply to the facts of this case. Accordingly, both the questions of law, are answered in favour of the Assessee and against the Revenue.' 3. In the light of the decisions supra, the availment of tax paid on 'garden maintenance service', 'catering service' and 'housekeeping service' as CENVAT credit is beyond dispute. 4. The other two issues determined against the appellant herein are that the invoices are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is done by the former. Crompton have not denied that the services, for which the Transformer division had taken credit, were actually availed by the other divisions. Hence, the billing procedure has not been proper in this case and the Transformer division cannot be regarded as functioning as an input service distributor.' 5. It has been claimed by Learned Counsel that the 'central service department' is part and parcel of the 'transformer division' and neither a separate division nor registered under Service Tax Rules, 1994. We have heard Learned Authorised Representative. 6. If the claim of the appellant that it is the 'transformer division' that was billed for the impugned services is correct, the proceeding acquire a different comple ..... X X X X Extracts X X X X X X X X Extracts X X X X
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