TMI Blog2013 (1) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... rtation of components/equipments for manufacture of water treatment plants. Since the appellants are engaged in manufacture of water treatment plants and installation, erection thereof, the service obtained in relation to parts and equipments can be said to be in relation to output service also. After all without importing parts and equipments neither manufacture nor erection or installation would be possible. Similarly in telephone service and surface area, sample testing area services, advertisement charges also can be definitely considered as utilised in relation to providing the output service The words used are "in relation to rendering of output service". Therefore what is required to be seen is whether the services have been used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red that the services, for which service tax credit availed and utilised, have not been utilised in relation to rendering the output services. 2. Accordingly a show cause notice was issued to initiate proceedings for recovery of wrongly availed cenvat credit which has culminated in confirmation of the demand for the same and with interest and penalty under Section 76 78 of Finance Act, 1994. 3. Heard both the sides. 4. The dispute is about the cenvat credit of service tax paid on travel agent service, custom house agent, tour operation, telephone, insurance, courier, testing services etc. during the period from 01.09.03 to 10.09.04. 5. Rule 3 of Service Tax Rules, provides that an output service provider shall be entitled to credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortation of components/equipments for manufacture of water treatment plants. Since the appellants are engaged in manufacture of water treatment plants and installation, erection thereof, the service obtained in relation to parts and equipments can be said to be in relation to output service also. After all without importing parts and equipments neither manufacture nor erection or installation would be possible. Similarly in telephone service and surface area, sample testing area services, advertisement charges also can be definitely considered as utilised in relation to providing the output service. The lower authorities seem to have gone on the assumption that the use has to be direct. The words used are "in relation to rendering of output ..... X X X X Extracts X X X X X X X X Extracts X X X X
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