TMI Blog2011 (7) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... ally connected with the business of manufacturing the final product. - Appeals are allowed - E/1228 & 1229/09 - A/272-273/2011-WZB/MUM/C-IV(SMB) - Dated:- 7-7-2011 - Shri S.K. Gaule, J. Ms. Aparna Hinrandagi Advocate for Appellant Shri Sanjay Kalra JDR for Respondent Per: S.K. Gaule These appeals have been filed by the appellants against Order-in-Appeal No. YDB/42 43/RGD/2009 dated 26.8.2009 whereby the Commissioner (Appeals) has upheld the orders of the lower adjudicating authority dated 7.5.2008 and 8.5.2008. The issue involved in both the appeals is common, therefore, they are taken up together for disposal. 2. Briefly stated facts of the cases are that the manufacturing unit of the appellant is located ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition that input services should be used in factory of manufacturing alone. The learned Counsel has tried to distinguish from definitions 4(1) 4(7) that there is a requirement that inputs should be used in the factory whereas same is not the case with input service. Therefore, the ground taken by the department that service tax paid on the input services, which is not used in the factory is not sustainable. The electricity transmitted to MSEB is in turn received by their unit which is used for manufacture of their final product establishes nexus or connection in relation to manufacture of the goods. In support of their contention, she relied on decisions of the Tribunal in the case of Indian Rayon Industries Ltd. 2006 (4) STR 79 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit Rules, 2004, which is reproduced herein as under: - "input service" means any service,- (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 upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who get such final products manufactured on his behalf, on job work basis, subject to the condition that the inputs are used in the manufacture of such final product by the job worker. Rule 4(7) - The CENVAT credit in respect of input service shall be allowed, on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in rule 9. 7. The Tribunal in the case of Indian Rayon Ind. Ltd. (supra) has held that no such stipulation regarding receipt of input service, which is separately defined under the Rules, is provided. The Hon ble High Court in the case of Ultratech Cement Ltd. (supra) has held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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