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2019 (2) TMI 202 - AT - Central ExciseCENVAT Credit - input services - services provided under Business Auxiliary Services - post manufacturing activity or not? - allegation of the department is that such activity carried out by TVSFS does not amount to promotion of sale or marketing of the goods belonging to appellants - period of 2005-06 to 2008-09 - Held that:- Prior to 01.04.2011, the definition of 'input services' included the words "activities relating to business" - The appellants being engaged in manufacture of motor vehicle looks upon the authorised dealers to sell their vehicles. The loan facility available at the dealer's premises would naturally enhance the sale of motor vehicles. Thus, the agreement entered by the appellants with TVSFS for arranging and disbursing of loans to customers at the dealers premises is indeed a sales promotion activity rendered by TVSFS to the appellants. Such services cannot be considered as post-manufacturing activity, so as to take it away from the ambit of definition of input services. The sale of motor vehicles is directly linked to the business of manufacture. Any activity which relates to business of manufacture falls within the definition of input service. The definition of input service has a 'means part' and an ‘inclusive part’. In the means part, the second sub-clause says that any service 'used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal'. The, phrase 'whether directly or indirectly, in or in relation' is so wide so as to include all activities pertaining to manufacture of finished product. In the case of M/s. Mahindra & Mahindra Ltd., [2012 (8) TMI 530 - CESTAT, MUMBAI], it was observed that after sale service activities rendered by the dealers as part of warranty offered by manufacturer would qualify as input services, when such expenses have been included in the assessable value - In the present case, the department does not deny the fact that such charges have been included in the assessable value of the appellants. Since, during the relevant period, the definition of 'inputs' included the words "all activities relating to the business", we have to safely conclude that the said activity rendered by TVSFS is an activity relating to the business of manufacture of appellants. The impugned services qualify as "input service" and is eligible for credit - appeal allowed - decided in favor of appellant.
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