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2014 (8) TMI 700 - AT - Central ExciseCENVAT Credit - input services - services used for construction of the railway siding - Nexus with manufacturing activity - Held that:- During the period of dispute, that is, during period from June 2008 to March 2010, the definition of ‘input service’ covered the ‘services used in relation to - procurement of inputs’ and also the ‘activities relating to business’. It is not disputed that the appellant have a captive power plant in their factory which uses coal and coal is transported to the factory by railways and for this purpose only, a railway siding was constructed at railway station Namli on Ratlam - Chittor Section. The construction of railway siding at railway station Namli is only to facilitate the transportation of coal to the appellant’s factory and, therefore, this service has to be treated as service used in or in relation to procurement of input. The transportation of coal, which is necessary for generation of electricity in the captive power plant, is in my view, integrally connected with the business of manufacturing of the final product and therefore the services received for construction of railway siding have to be treated as ‘services used in or in relation to procurement of inputs’ and also the ‘activities relating to Business of manufacture of the final product. In view of the above discussion, I hold that the service in question is covered by the definition of input services and would be eligible for Cenvat credit - Decided in favour of assessee.
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