TMI Blog2012 (6) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... f removal till it reaches its destination falls within the definition of input, service - the word transportation is included in the phrase 'clearance of final products from the place of removal' after the final products has reached the place of removal - in the later portion of the definition the words 'activities relating to business’ is used to expand the meaning of the word 'input service'- while dealing with outward transportation two words inputs' or 'capital goods' are conspicuously missing as after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /agreement (i) the ownership of goods and the property in the goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his doorstep; (ii) the seller bore the risk of loss of or damage to the goods during transit to the destination; and (iii) the freight charges were an integral part of the price of goods, then the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of the definition as under Section 2 of the Central Excise Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the word 'means' and 'includes', but not 'means and includes'. The portion of the definition to which the word means applies has to be construed restrictively as it is exhaustive. However, the portion of the definition to which the word includes applies has to be construed liberally as it is extensive. The exhaustive portion of the definition of 'input service' deals with service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, it also includes clearance of final products from the place of removal. Therefore, services received or rendered by the manufacturer from the place of removal till it reaches its destination falls within the definition of input, service. What are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bus phrase is used to expand the meaning of the word 'input service'. However, after using the omnibus phrase, examples are given. It also includes transportation. The words used are (a) inward transportation of inputs or capital goods (b) outward transportation up to the place of removal. While dealing with inward transportation, they have specifically used the words 'inputs' or 'capital goods'. But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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