Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 1129 - AT - Central ExciseCENVAT Credit - banking and financial services - Held that:- Eligibility of banking and financial services for cenvat credit, it is seen that this issue stands decided in favour of the respondent by the judgement of the Tribunal in the cases of JSW Steel Ltd. (2008 (9) TMI 74 - CESTAT, CHENNAI) and Jenson & Nicholson (India) Ltd. [2014 (10) TMI 331 - CESTAT NEW DELHI] & MPI Machines Ltd. [2014 (1) TMI 718 - CESTAT NEW DELHI]. In view of this, the impugned order allowing the cenvat credit in respect of these services is correct and as such, there is no infirmity for the same. - definition of "input service" is very wide and covers not only the services which are directly or indirectly used in or in relation to the manufacture of final products, but also includes various services used in relation to the "business of manufacture of final product", be it prior to the manufacture of final products or after the manufacture of final products and that the definition of 'input service' is not restricted to the services used in or in relation to the manufacture of final products but extends to all services used in relation to the business of manufacturing the final product. No doubt that the inclusive part 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. (2009 (8) TMI 14 - SUPREME COURT) 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 manufacture of final product would qualify to be input service under Rule 2(l) of 2004 Rules. - Since during the period of dispute, definition of "input service" included the activities relating to business, in view of the judgement of the Hon'ble Bombay High Court [2010 (10) TMI 10 - BOMBAY HIGH COURT], it has to be held that definition of "input service" would cover not only the services which are used in or in relation to the manufacture of final products but also all the services which are used in or in relation to the business of manufacture of final products, irrespective of whether those services are used before the manufacture, during the manufacture or after the manufacture. - No infirmity in the impugned order - Decided against Revenue.
|