TMI Blog2010 (8) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... e is constitutionally binding on this Tribunal - There are clearly two differing decisions of the Coordinate Benches on the same issue - It appropriate to place the matter before Hon’ble President for considering reference to Division Bench. - ST/576/2009 - . 412/2010 - Dated:- 20-8-2010 - Shri M. Veeraiyan, JJ REPRESENTED BY : Shri S. Ananthan, Consultant, for the Appellant. Shri K. Balasubramaniam, JDR, for the Respondent. [Order] . - This is an appeal against the order of the Commissioner (Appeals) in Order-in-Appeal No. 120/2009 dated 25-8-2009 by which the order of the original authority dated 28-3-2008 stands upheld. 2. Heard both sides. 3. The relevant facts in brief are that the appellants are provider of Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be made by holding that the premises referred to in the definition of the term input services should be only premises of the service provider where services are actually provided. He also relies on the decision of the Tribunal in their own case for an earlier period in Appeal No. ST/81/2009 vide Final Order No. 424/10, dated 9-4-2010 [2010 (19) S.T.R. 40 (T)] by which Cenvat credit of service tax paid on services utilized for construction of executive staff quarters has been allowed. 5. Learned DR submits that the words premises used in connection with the provider of service cannot be read in isolation; it cannot include every premises in the ownership of the appellants as claimed by the appellant; it should have proximity/connect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation and taken to mean every premises whether it is office premises , residential premises or recreational facilities or schools etc., of the service provider. The terms inputs and input services are relative terms and should be understood accordingly. 8.2 For example, yarn is a final product of a spinning unit (manufacturer of yarn) but yarn will be an input for a manufacturer of grey fabrics; fabrics which is a final product in the hands of the manufacturer of the said fabrics, will be an input in the hands of a processor and similarly the processed fabrics become inputs for manufacture of ready-made garments. 8.3 Whether certain services can be considered as input services should be determined based on nexus to the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice need not necessarily be rendered within the factory premises whereas an input should normally be used within the factory. Broadly, this distinction sounds valid. But, again, it does not offer an answer to the question whether the service (which is rendered within the factory or outside) satisfies other essential requirements laid down in the main part of the definition. Even if it be held that there is no place of use in relation to input service, the basic requirement remains to be that anything mentioned as an input service in the inclusive part of the definition should be shown to have been used in or in relation to the manufacture or clearance of final products, whether directly or indirectly. 6. In the earlier cases of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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