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TMI Blog2024 (11) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... uct up to the place of removal are considered as input service. In the present case all the services described above are undisputedly used in the factory of the manufacturer. Therefore, the same are clearly covered under the Rule 2 (l)(ii) of the definition of input services. Similar issue has been dealt with by the Ahmedabad bench in the case of Piramal Glass Ltd [ 2019 (10) TMI 1032 - CESTAT AHMEDABAD] wherein the tribunal has held that ' In the present case, installation of new furnace is directly used in relation to manufacture of final product. Therefore, even as per the main clause of the definition of the input service, these services are input services and credit is rightly availed by the appellant.' In view of the above judgment, even though the wording setting up was deleted from the inclusion clause of the definition but all the services are covered under the main clause of definition of input services as per Rule 2 (l) of Cenvat Credit Rules, 2004 so far these services were used by the manufacturer, directly or indirectly in or in relation to the manufacture of the final product. Therefore the cenvat credit on the subject input services are admissible. The impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Glass Limited V/s CCE-2019 (10) TMI 1032 CESTAT Ahmedabad Supreme Industries Ltd.V/s CCE-2020 (1) TMI 1317 CESTAT Ahmedabad Kellogs India Pvt. Ltd. V/s CCE-2020 (7) TMI 414 - CESTAT Hyderabad Brahmani River Pellets Limited V/s CCE-2023 (10) TMI 287 - CESTAT Kolkata BMM Ispat Ltd. V/s CCE-2019 (5) TMI 587 CESTAT Bangalore Hindalco Industries Limited V/s CCE-2019 (5) TMI 1620 - CESTAT New Delhi Uni Abex Alloy Products V/s CCE-2019 (2) TMI 569 CESTAT Bangalore Deepak Fertilizers And Petrochemicals Corporation Ltd. V/s CCE-2013 (4) TMI 44 Bombay High Court Mukund Limited V/s CCE-2019 (3) TMI 1422 CESTAT Bangalore 2.1 He further submits that in the present case the show cause notice was issued invoking the extended period. Therefore, in absence of any suppression of fact, the entire demand is time bar. 3. Shri R.R Kurup, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the records. We find that the appellant in the present matter, the subject services in question on which the appellant has claimed the Cenvat credit are as under:- Sr. No. Description o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en decided in various judgments. Some of the judgments are reproduced below: Evonik Speciality Silica India Pvt. Ltd. Vs. CCE (2024) 18 Centax 223 (T) Pepsico India Holdings (Pvt.) Ltd. V/s CCE-2021 (7) TMI 1094 CESTAT Hyderabad Aditya Aluminium V/s CCE-2023 (9) TMI 55 CESTAT Kolkata Sesa Sterlite Limited V/s CCE-2024 (6) TMI 679 - CESTAT Mumbai Piramal Glass Limited V/s CCE-2019 (10) TMI 1032 CESTAT Ahmedabad Supreme Industries Ltd.V/s CCE-2020 (1) TMI 1317 CESTAT Ahmedabad Kellogs India Pvt. Ltd. V/s CCE-2020 (7) TMI 414 - CESTAT Hyderabad Brahmani River Pellets Limited V/s CCE-2023 (10) TMI 287 - CESTAT Kolkata BMM Ispat Ltd. V/s CCE-2019 (5) TMI 587 CESTAT Bangalore Hindalco Industries Limited V/s CCE-2019 (5) TMI 1620 - CESTAT New Delhi Uni Abex Alloy Products V/s CCE-2019 (2) TMI 569 CESTAT Bangalore Deepak Fertilizers And Petrochemicals Corporation Ltd. V/s CCE-2013 (4) TMI 44 Bombay High Court Mukund Limited V/s CCE-2019 (3) TMI 1422 CESTAT Bangalore In the case of Pepsico India Holdings Pvt Ltd addressing the same issue, following order has been passed :- 13. We have considered the arguments on both sides and perused the records. 14. The appellants had entered into an agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le as amounting to manufacture; or iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer; the word manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account. 20. Thus, the term 'manufacture' itself is very wide and includes anything incidental or ancillary to manufacture. 21. 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 di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the manufacture of final products and clearance of final products upto the place of removal. And includes services used in relation to modernization, renovation or repairs of a factory, remises, 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, 8.. We observe that the aforesaid definition has three limbs- (1) 'means clause' (2) 'includes clause (3) 'excludes clause'. It is seen that the credit in dispute, which was availed during the relevant period, were inter alia used for setting up of the plant. These input services are directly linked to the manufacture of the final product in as much as without availing the aforesaid services, the Appellant could not have set up the factory for manufacture of the goods. Hence, the input services ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a manufactured product; ii) which is specified in relation to any goods in the Section or Chapter notes of the Fourth Schedule as amounting to manufacturer; or iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labelling of containers including the declaration or alteration of retail sale price on Excise Appeal No. 76189 of 2018 6 it or adoption of any other treatment on the goods to render the product marketable to the consumer; the word manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account. 20. Thus, the term 'manufacture' itself is very wide and includes anything incidental or ancillary to manufacturer. 21. 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 manufacturer under section 2(1) of the Central Excise Act. Any service which is used not only in manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e railway wagons in an automated manner after the coal is crushed into the desired size. It is not in dispute that the service used by the appellant is for modernization of the coal loading process. The definition of input service specifically includes services received by a manufacturer for modernization of a factory. We have also perused the decision of the Tribunal in the case of Pepsico India Holdings (P) Ltd., (Supra) relied upon by the appellant. The Tribunal has observed that without setting up of the factory, there cannot be any manufacture and the mere fact that the words 'setting up of factory has not been retained in the definition of input services post 01.04.2011, the same will not mean that the benefit of credit has been taken away by the legislature. The relevant portion of the decision is reproduced below:- 7. We thus find that services used for setting up of the factory eve after 01.04.2011 would be eligible for credit. 10. We observe that similar position has also been held in the following decisions: Jindal Steel and Power Ltd, Vs. Commissioner of Central Tax, Rourkela vide Final order No. 75613/2023 dated 08.06.2023. Shell India Pvt. Ltd. Vs. Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of service tax paid thereon. The excluded category of services provided under Rule 2(1) ibid interalia, includes service portion in the execution of the works contract and construction services insofar as they are used for (a) construction or execution of works contract 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 . 4. On consideration of the disputed services used/utilised by the appellants as listed out in paragraph 1 above, we find that such services were not falling under the exclusion clause provided under Rule 2(1) (A) ibid. Since, the disputed services were not specifically falling under the excluded category and were used in relation to manufacture of the final products, in our considered view, denial of Cenvat Credit of service tax paid on those services cannot be sustained. We find that the issue arising out of the present dispute has been adequately dealt with by the Co-ordinate Bench of This Tribunal in the case of Pepsico India Holdings (Pvt.) Ltd. Vs. Commissioner of Central Tax, Tirupati, reported in 2021 (7) TMI 109-CESTAT HYDERABAD. The relevant paragraphs appearing in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng manufacturing factory wherein many other plants and machinery and two furnace were already setup and with the said existing facility, the appellant are manufacturing excisable goods for last many years. For enhancing their production, the appellant set up a new furnace, it cannot be said that they have setup a new factory. It is merely an expansion of the existing factory and therefore, even if the term setting up of factory is removed from the inclusion clause of definition of input service, it does not adversely affect the appellant to avail Cenvat credit on various services. Moreover, as per the amendment in Rule 2(1) of Cenvat Credit Rules, 2004 certain services were excluded from the definition of Input Service and only those services were not be eligible for Cenvat credit. On careful perusal of the exclusion clause, I do not find the services in question in the present case, fall under the exclusion clause. For this reason, the appellant's claim for availment of Cenvat credit cannot be rejected. 5. The very same issue has been considered by the Tribunal in the case of Shiruguppi Sugar Works Limited (supra) wherein in identical facts, the Tribunal has allowed Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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