TMI Blog2011 (8) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... y, Member(T) Per: B S V Murthy: CENVAT Credit of Service Tax paid on various input services amounting to Rs.6,35,506/- (Rupees Six Lakhs, Thirty Five Thousands, Five Hundred and Six only) during the period 2006-07 to 2008-09 has been demanded with interest holding that the same is not admissible. Penalty equal to the Service Tax amount demanded has also been imposed. 2. Heard both sides. 3. The services in respect of which the CENVAT Credit has been denied are as follows: i) Outdoor Catering service, ii) Valuation of Immovable Property, iii) Consulting Engineer service, iv) Air Travel Agent services, v) Tour Operator service, vi) Business Exhibition service, vii) Repairing charges, viii) Photography service, ix) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the ratio laid down by the Apex Court in the case of Maruti Suzuki Ltd. (supra) in the context of the definition of 'input' in Rule 2(k) of 2004 Rules would equally apply while interpreting the expression "activities relating to business" in Rule 2(l) of 2004 Rules. No doubt that the inclusive part of the definition of 'input' is restricted to the inputs used in or in relation to the manufacture of final products, whereas the inclusive part of the definition of input service extends to services used prior to/during the course of/after the manufacture of the final products. The fact that the definition of "input service" is wider than the definition of 'input' would make no difference in applying the ratio laid down in the case of Marut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to restrict the definition of input service to a particular class or category of services used in the business. Therefore, it would be reasonable to conclude that the expression such asused in the inclusive part of the definition of input service is only illustrative and not exhaustive. 7. Ld.Commissioner has relied upon the decision of Hon'ble High Court of Panjab Haryana the case of Perfetti Van Melle India Pvt.Ltd. Vs UoI 2010 (254) ELT 620 (P H) , in support of the view taken by her. However, I find that in that case, the issue was whether the item was input or not and input service was not the issue. Hon'ble High Court has clearly held that the input and input services are to be treated differently and that is why the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t take the view that it was beyond the powers of rule making authority to provide for wider coverage of input service. In view of the decisions of Hon'ble High Courts, the decision of the Tribunal relied upon by the ld.Commissioner cannot be followed. Unfortunately, she has failed to take note of decision of Coca Cola India Pvt.Ltd. 2009 (15) STR 67 (Bom.) , which was cited before her where the Hon'ble High Court did not consider the definition to be beyond the rule making power. In view of the above, the decisions in the cases of Maruti Suzuki and Kbace Tech Pvt.Ltd are not applicable, to the facts of this case. 9. As regards Outdoor Catering service, issue is covered by the decision of Hon'ble High Court of Gujarat in the case of Ferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to arrive at quantum of depreciation admissible and also to know the life of the factory. Therefore, it has to be held as relatable to business of manufacture and therefore admissible. 10.2 The services of Consulting Engineers were in relation to technical knowhow for manufacture of pharmaceutical machinery undertaken by the appellant. Without technical knowhow, machinery can not be manufactured. Naturally, this is relatable to manufacture and therefore admissible. 10.3 As regards Air Travel services, it is squarely covered by the decision of Tribunal in the case of Dr.Reddys Lab Ltd. Vs. CCE Hyderabad 2010 (19) STR 71 (Tri-Bang) . Since it is a Division Bench decision and covers very same service, I respectfully follow the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regards Service Tax paid on repair charges, there cannot be any dispute that it relates to manufacture. Therefore, credit is admissible. 10.7 As regards photographic service, it is also for promotion of sales and therefore can be held directly relatable to manufacture. Therefore, this credit is also admissible. 10.8 As regards service tax paid on labour charges to the job worker for job working the goods and receiving them back for using in manufacturing activity is definitely relatable to manufacture and therefore the credit is admissible. 11. The discussion above would show that CENVAT Credit is admissible for all the services which are related to manufacture and therefore on merit, the appellant succeeds. Since the appellants su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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