TMI Blog2011 (4) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... is allowed and the impugned order is stayed to the extent of claim for refund - E/1641/2010 - 504/2011-EX (PB) - Dated:- 8-4-2011 - Justice R.M.S. Khandeparkar, Shri Rakesh Kumar, JJ. Shri R.K. Verma (DR), for the Appellant. Shri S.C. Kamra with G.K. Mahajan, Advocates, for the Respondent. [Order per : Justice R.M.S. Khandeparkar, President (Oral)]. Heard the DR for the appellant and the Advocate for the respondents. The present application has been filed in the appeal arising from the order dated 18-3-2010 passed by the Commissioner (Appeals), Meerut-I. By the impugned order, the lower appellate authority has set aside the order passed by the adjudicating authority. The Additional Commissioner, Meerut-I by its order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no proper bus services available and in order to enable the employees to attend the work in time, the company had arranged residential and dormitory within the factory complex and the same is to be construed in relation to the manufacture of goods. 3. Bombay High Court in Ultratech Cement Ltd. case held thus- 28. In the present case, the question is, whether outdoor catering services are covered under the inclusive part of the definition of input service . The services covered under the inclusive part of the definition of input service are services which are rendered prior to the commencement of manufacturing activity (such as services for setting up, modernization, renovation or repairs of a factory) as well as services rendered aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30. The Apex Court in the case of Maruti Suzuki Ltd. (supra) has considered the expression used in or in relation to the manufacture of final product in the definition of input under Rule 2(k) of 2004 Rules and held as follows :- 14. ........... Moreover, the said expression, viz, used in or in relation to the manufacture of the final product in the specific/substantive part of the definition is so wide that it would cover innumerable items as input and to avoid such contingency the Legislature has incorporated the inclusive part after the substantive part qualified by the place of use. For example, one of the categories mentioned in the inclusive part is used as packing material . Packing material by itself would not suffice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of the said item which would constitute the relevant consideration. Unless and until the said input is used in or in relation to the manufacture of final product within the factory of production, the said item would not become an eligible input. The said expression used in or in relation to the manufacture have many shades and would cover various situations based on the purpose for which the input is used. However, the specified input would become eligible for credit only when used in or in relation to the manufacture of final product. Hydrogen gas used in the manufacture of sodium cyanide is an eligible input, since it has a significant role to play in the manufacturing process and since the final product cannot emerge without the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. (supra), we hold that the services having nexus or integral connection with the manufacture of final products as well as the business of manufacture of final product would qualify to be input service under Rule 2(l) of 2004 Rules. In sum and substance, undoubtedly, the Bombay High Court has held that the expression activities in relation to business in the definition clause of the term Input service postulates the activities which are integrally connected with the business of the assessee. Perusal of the impugned order discloses that the Commissioner (Appeals) has observed that commercial construction services for the purpose of construction of staff quarters for the factory staff/workmen inside the factory premises are also cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs would also form part of services within the meaning of the said expression under the said Rules. 7. Plain reading of the said definition, therefore, would disclose that the inclusive portion specifically includes any construction activity relating to the factory premises, sales office premises of the factory, but there is no inclusion of residential premises. 8. Reference to the activity relating to the business, undoubtedly, gives various examples as rightly pointed out by the Advocate for the appellants those being illustrative nature would not be restrictive only to those items which are specified in the said definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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