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TMI Blog2009 (5) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... ners in relation to installation of Fly Ash handling, Storage & Loading System at Kota Thermal Power Plant, Kota (Rajasthan). (b) Credit in respect of services provided by M/s. Holtech Consulting (P.) Ltd., relating to fee for submission of DHDB report and fee due on submission of deposit block model report in relation to mines situated outside the factory. (c) Credit in respect of coal/fly ash handling services provided by M/s. Dahej Harbour, Infr. Ltd. and M/s. Translinks, but in fact it relates to service charges recovered by the provider in the matter of refund of MP/MAD/Cess and to bonus payable to provider against storage in coal rakes. (d) Credit in respect of the services provided by M/s. N.K. Traders for supervision and regulati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CCE v. Cable Corporation of India Ltd. [2009] 19 STT 158 (Mum. - CESTAT), wherein rent-a-cab service used for transporting employees to work in the factory for manufacture of goods, input service credit is eligible. He also relied upon the decision of the Tribunal in the case of Manikgarh Cement v. CCE&C [Final Order No. A/27 (Mum. - Trib.) of 2008-WZB, dated 13-12-2007]. He submits that the Commissioner (Appeals) rightly held that there is no provisions for denial of credit on the ground that the service was rendered outside the factory premises. 6. In reply to the submission of the respondent, the ld. DR submits that rule 2(l) of the Rules is very clear that the services used by the manufacturer must be in relation to the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,— (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to setting up, modernisation, renovation or repairs of a factory, premise of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f work-in-progress, finished goods, recoveries for sales of scrap, wastage, etc., shall be made. It is noted that the services rendered in procurement of raw materials would be included in the raw material cost, which is also included in the cost of production. The Larger Bench while dealing with Service Tax on the outdoor catering services, it has been held that as the same will form part of cost of production. In the present case, it has also been observed that coal/fly ash are inputs required for the manufacture of final products and the expenses incurred for services thereon included in the raw material cost, a part of the cost of the production. So, the Commissioner (Appeals) rightly allowed the credit on these items. 10. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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