TMI Blog2013 (1) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... e input services are used in the manufactured or produced from input or said service Ammonia is imported by the appellant and after goods are cleared from the port and the goods are delivered to the appellants. Procurement of the input is over after taking delivery of the goods. Thereafter appellants are eligible for credit of service tax paid on inward transportation of the inputs as per definitions of the input service. Thus finding that Consulting Engineer Service, Technical Inspection and Certification Service, Construction Service and erection, commissioning and installation service are used in installation of storage tanks outside the factory. Inclusive definition of input service also includes input services used in relation to st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dist-Raigad for storage of imported Ammonia. They also informed that they are eligible for Cenvat Credit of service tax paid on input services used for said ammonia storage tank installed at JNPT for storage of input/raw material meant for manufacturing of final product at their Taloja factory. The appellant availed the service tax of Cenvat Credit in respect of services of Consulting Engineers, Technical Inspection and certification service, Construction service, erection, commissioning and installation service towards installation of ammonia storage tank at Jawaharlal Nehru Port Trust facility. The department felt that services received in connection with the activity of installation of storage tank which is immovable property and outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal are not eligible for the Cenvat Credit and place of receipt of input service is not relevant for the other services and therefore the ground of service being rendered and availed outside the factory is irrelevant and incorrect for denying the credit of service tax. He further submitted that the definition of input service is very wide and would cover all services required for business of manufacturer. The appellants stored the inputs in the storage tanks which are used in the manufacture of dutiable final products and, therefore services received for setting up of his storage tanks are required for the business of appellants and therefore the finding of the Commissioner that service received by the appellants are not used in the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ltd. [Final order No. A/469/2010-WZB/C-IV/SMB, dated 8-9-2010] [vi] Maharashtra Seamless Ltd. v. CCE [2012] 34 STT 493 [vii] CCE v. ICL Sugars Ltd. 2011 (271) ELT 360 (Kar.) [viii] CCE v. SLR Steels Ltd. 2012 (280) ELT 176 (Kar.). 4. The learned Additional Commissioner authorized representative appearing for the Revenue reiterated the findings of the Commissioner and submitted that the storage tank is located outside the factory premises of the appellants and therefore they cannot avail the Cenvat Credit in respect of input services which are used outside their factory. Since the storage tank is attached to the earth and becomes immovable property and hence not excisable, therefore, the credit of service tax paid on input servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financing, recruitment and quality control, coaching and training, computer networking credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal". 8. As per definition of final products under Rule 2(h) of the Cenvat Credit Rules final products means excisable goods manufactured or produced from inputs or using input service. Combined reading of the Rule 2(l) and 2(h) shows that input service means any service used by the manufacturer whether directly or indirectly in or in relation to manufacture of excisable goods manufactured or produced from input or said service. That means that only those services will qualify for the input services which are use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are cleared from the port and the goods are delivered to the appellants. Procurement of the input is over after taking delivery of the goods. Thereafter appellants are eligible for credit of service tax paid on inward transportation of the inputs as per definitions of the input service. 12. We find that these services are used in installation of storage tanks outside the factory. Inclusive definition of input service also includes input services used in relation to storage upto the place or removal. Storage upto place of removal will include the storage of final products and not storage of inputs because whenever legislature wanted to give the benefit, in respect of inputs it has done so by specifically mentioning as procurement of inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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