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TMI Blog2024 (7) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order are that the appellant had availed CENVAT credit of duty paid on inputs and service tax on input services; such CENVAT credit availed on input services of commercial and industrial construction, fabrication and erection, manpower supply for construction and Goods Transport Agency for construction materials etc. during the setting up of the unit in the years 2008 - 09, 2009 - 10 and 2010 - 11. It was the case of the Revenue that the above credit availed did not have any nexus with the manufacturing activity either directly or indirectly and hence, the same were not used in the activities specified under the definition of Rule 2(l) of the CENVAT Credit Rules, 2004. This prompted the Revenue to issue the Show Cause Notice dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sale of goods up to the place of removal. The dispute therefore relates to the determination of exact place of removal on the specific factual matrix of this case. 5. Insofar as the services in question are concerned, the first appellate authority has observed that the above services, when received, neither the manufacture nor the business of manufacturing had commenced. It is thus his case that the above services were received in the period where there was no manufacturing activity and nor was there any clearance of goods. In this connection, he has relied on paragraph (i), (ii) and (iii) and finally has concluded that security agency, telephone, courier agency, manpower supply, and GTA service and other services referred to as above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly covered under the inclusive part of the definition of input service. 8. Insofar as consultancy service is concerned, it is their case that the machineries erected in the cement grinding plant required the technical inspection and certification by specified agencies before those machineries could be put into use and therefore, such services like technical inspection and certification were clearly input services in setting up of the cement grinding plant. Consequently, the tax paid on such services would qualify for credit. 9. Insofar as other services like telephone services, courier, advertisement, consultancy fee, insurance, internet and telecommunication and authorized service station services, it is urged that the above would have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer of excisable goods upon the payment of duty. In this regard, reliance is placed on CCE, Nagpur Vs. Ultratech Cement Ltd. reported in 2010 (260) ELT 369 (Bom.). 11. In a nutshell, it is their case that the credit for service tax paid on inward transportation of materials ought not to have been disallowed since the very definition of input services as it stood during the relevant period did not exclude the input services relating to the transportation of goods to the appellant's manufacturing plant. Further, the question of determination of place of removal in respect of inward transportation was not at all relevant during the material point of time and hence, the service tax paid on such inward transportation of the goods qualifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le High Court of Himachal Pradesh in the case of Inox Air Products Pvt. Ltd. Vs. ACCE & ST Division. 15. They also rely on a Final Order No. 40201/2024 dated 22.2.2024 and conclude that insofar as GTA outward transportation credit, the same is covered by the above rulings and hence, the order of the original authority which is contrary to the above rulings, cannot stand the scrutiny of law. 16. Per contra, learned Authorized Representative relied on the findings of the lower authority. 17. After hearing both sides, we find that the only issue to be decided is, "whether the Revenue is justified in denying the availment of input service credit on the ground that the services in question did not have any nexus with the manufacturing activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business. We fail to understand the logic behind this conclusion. It is not their case that the appellant having undertaken the activity of setting up of the factory did not carry any manufacturing activity in that premises and therefore, the denial of input credit was called for. It is the settled position of law that the ambit of the definition prior to 01.04.2011 was large enough to cover all such activities that are disputed here, in this case, as long as there is no denial by the revenue that after setting up of the factory, no business was carried on from that premises. 20. We also find that the orders/decisions relied upon by the appellant in this regard support their case. 21. In view of the above settled position law vis-&agr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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