2007 (3) TMI 738 - CESTAT AHMEDABAD

Waiver of Pre-deposit - CENVAT credit - Input services - Services as provided by Customs House Agent/Shipping Agent/Port Service - Commissioner held that services utilized for clearance of final products at the Jetty would not qualify as ‘input services’ - HELD THAT:- The definition of input service fixes the meaning of that expression and such services used by the manufacturer, are required to have a nexus with the manufacture of the final product and clearance of the final product from the place of removal. Place of removal is well defined in Section 4(3)(c) and admits no extension of its meaning to the place of shipping port. The services which are enumerated in the inclusive clause, which applies both, in the context of the provider of output services as well as the manufacture, cannot be read de hors the meaning of input service under Rule 2(l).

Therefore, all the activities relating to business, which are input services used by the manufacturer in relation to the manufacture of final product and clearance of the final product from the place of removal alone would be eligible. After the final products are cleared from the place of removal, there will be no scope for subsequent use of service to be treated as input. Prima facie, therefore, services beyond the stage of manufacturing and clearance of the goods from the factory could not be input services. The Commissioner, therefore, does not appear to have committed any error in disallowing the Cenvat credit on this ground. Other items are not pressed at this stage.

Thus, we direct that there will be interim stay of the impugned order on the appellant’s depositing a further sum of ₹ 25 lakhs (Rupees Twenty-Five lakhs) within six weeks from today, failing which the appeal will stand dismissed. This application is disposed off accordingly.