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TMI Blog2024 (6) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... s destroyed without releasing into the atmosphere for which the manufacturer becomes eligible to earn CC towards CER norms of the Kyoto protocol. The order of Delhi Bench in the case of SHREE BHAWANI PAPER MILLS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE. LUCKNOW [ 2012 (12) TMI 741 - CESTAT NEW DELHI] would apply to the facts of the present case as well, where it was held that ' I fully agree with the learned advocate that the above contention of the Revenue that the amount earned as a result of consultancy must be either subject to excise duty or should be taxable under the Service Tax is nothing but a fallacy. The amount earned as a result of such service availed by the party is the income of the appellant and is not required to be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was sought to be availed as input service credit by the appellant, which is the origin of the present dispute. 2. During the year under dispute, it was noticed by the Revenue during audit that the taxpayer had sold such CC through M/s. Emergent Ventures India Pvt. Ltd. (EVIPL for short), they had availed service tax credit on CMD consultancy charges paid to EVIPL on the basis of ISD invoices issued by their corporate office at Chennai. It was thus the case of the Revenue that the credit so availed for the period from May 2009 to February 2011 was not allowable under Rule 2(l) of CCR, 2004 since any credit on input services could be availed only when such services are used in or in relation to the manufacture of final products or providing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of input service under Rule 2(l) of CCR, any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of the same, could avail the credit. Accordingly, the appellant having received the consultancy services from EVIPL in relation to carbon credit management services as per the guidelines under Kyoto protocol for meeting with the requirements of reduced emission norms and for trading of carbon credit. Therefore, the consultancy services was clearly in relation to the carbon credit management, which squarely falls within the definition of input service. 6. Reliance is placed in this regard on an order of Delhi tribunal in the case of Shree Bhawani Paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided by us is, whether the appellant was eligible for availing the input service credit on the service charges paid by it ? 10.1 Rule 2(l) of the CCR as it stood at the relevant period and prior to 1.4.2011 reads as under: Input service means any service (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, And includes services used in relation to setting up, modernisation, renovation or repairs of factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit by way of earning carbon credit, it cannot be held that said services of M/s. Ernst Young Pvt. Ltd., were for the purpose of earning the credit. I fully agree with the learned advocate that the above contention of the Revenue that the amount earned as a result of consultancy must be either subject to excise duty or should be taxable under the Service Tax is nothing but a fallacy. The amount earned as a result of such service availed by the party is the income of the appellant and is not required to be leviable to Service Tax. As long as the services of consultancy engineering by the appellant are in relation to the development of the power plant, which in turn is used for manufacture of paper, such services get covered under the cov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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