TMI Blog2009 (5) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was not eligible for credit. In the light of the decision of GTC Industries Ltd. 2008 -TMI - 31592 - CESTAT MUMBAI, and on the basis of the decision of Commissioner(Appeals) that there is no provision for denial of credit on the ground that the service is rendered outside the factory premises, held that appeal filed by revenue rejected. - 2287 OF 2007-SM - 651 OF 2009-SM(BR) - Dated:- 12-5-2009 - P.K. DAS, JUDICIAL MEMBER S. Gautam for the Appellant. R. Raghavan for the Respondent. ORDER 1. The relevant facts of the case, in brief, are that the respondents are engaged in the manufacture of cement. They availed Cenvat Credit on input services during the period from January, 2005 to December, 2005. The details of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of final products and clearance of final products from the place of removal. He submits that the input services in this case were rendered outside the place of removal of the goods and, therefore, they are not eligible. 5. Ld. Advocate on behalf of the respondents reiterates the findings of Commissioner (Appeals). He drew the attention of the Bench to Cenvat Credit Rules (draft rules) and Cenvat Credit Rules, 2004. He also submits that the Larger Bench of the Tribunal in the case of CCE v. GTC Industries Ltd. [2008] 17 STT 63 (Mum. - CESTAT) while dealing with the input-services of outdoor catering service held that outdoor caterer providing catering services is input service relating to business. It has been held that expenses to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace of removal" indicate that activities should be within the factory premises. It is his contention that whatever the expenses incurred by the assessee and service tax paid cannot be eligible for Cenvat credit. It must be looked into as to whether the service is used in the manufacture of the final products. 7. After hearing both the sides and on perusal of the records, I am unable to accept the submission of the ld. DR that the services rendered by the service providers outside the factory of manufacture cannot be treated as services in relation to procurement of inputs. It should be kept in mind that excise duty is a tax on value addition on goods, service tax is a tax on value addition by rendering services. Service tax has to be und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct. 9. It is revealed from the impugned order that coal and fly ash are required for the manufacture of their final products. M/s. Dahej Harbour and M/s. Translinks rendered services with regard to transportation of coal and fly ash. It appears that the credit availed by the respondents in respect of the inputs services, which are in relation to the manufacture of the final product. It is contended by the ld. Advocate that value of the such services were already included in the assessable value. The Larger Bench of the Tribunal in the case of GTC Industries Ltd. (supra) held that the cost of production shall consist of material consumed, Direct Wages and Salaries, Direct Expenses, Works Overheads, Quality Control Cost, Research and Dev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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