TMI Blog2014 (12) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... ality sugar cane, which is a must for any sugar manufacturing business. In view of this, this activity has to be treated as having nexus with manufacturing business of the appellant - question of eligibility for Cenvat credit of the activities of sugar cane area survey and sugar cane development has to be seen on the basis as to whether these activities have nexus with the business of manufacture of sugar. In my view, while these activities may not have nexus with manufacture of sugar, these activities certainly have nexus with the business of manufacture of sugar, as the supply of good quality sugar cane with good sugar recovery is a must for the business of manufacture of sugar. Therefore, I hold that the Cenvat credit in respect of these activities would be admissible. Any expenditure incurred by a manufacturer is deemed to be included in the price charged by him from his customers and therefore the manufacture is not required to prove that the expenses incurred by him on various inputs and input services used in the manufacture of the final product has been included in the price charged by him. - the impugned order is not sustainable - Decided in favour of assessee. - Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roducts and, hence, same would be eligible for Cenvat credit, that the Tribunal in the case of CCE, Salem vs. ITC Ltd. reported in 2011 (268) E.L.T. 89 (Tri. - Chennai) has held that the supply of JCB for yard cleaning and internal road levelling, plastic removal and cleaning of yard, would be eligible for Cenvat credit, that as regards the second category of jobs for which the manpower supply was used, these jobs were relating to weighment of the sugar cane and unloading of sugar cane at the factory, that these services are relating to procurement of inputs, which was specifically covered by the definition of input service during the period of dispute, that as regards the manpower used for cane area survey and sugar cane development work, this activity has close nexus with the business of manufacture of sugar, as good quality sugar cane is a must for any sugar factory, that Hon ble Bombay High Court in the case of CCE, Nagpur vs. Ultratech Cement Ltd. reported in 2010 (260) E.L.T. 369 (Bom.) in para 28 and 29 of the judgment has held that the definition of input service in Rule 2 (l) of Cenvat Credit Rules, 2004 is very wide and covers not only services which are directly or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, therefore, these services would not be eligible for Cenvat credit. He also drew attention to the list of invoices annexed with the show cause notice and pointed out that in a number of cases the nature of work has no nexus with the manufacture of sugar. He also pleaded that in terms of the Apex court s judgment in the case of Maruti Suzuki Ltd. (supra), an input or input services for being eligible for Cenvat credit must have nexus with the manufacture of final product while the services availed in this case have no such nexus whatsoever. Shri Batra also pleaded that the appellant have not produced any evidence to prove that the cost of the services in respect of which Cenvat credit had been taken by them, had been included in the price of their final product and for this reason also, Cenvat credit would not be eligible for Cenvat credit. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. As regards cleaning of the yard within the factory, as per the provisions of the factories act provision of Section 11 of the Factories Act it is the responsibility of a manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (l) of the Cenvat Credit Rules . In this judgment the Hon ble Bombay High Court also discussed the Apex Court s judgment in the case of Maruti Suzuki Ltd. vs. Commissioner reported in 2009 (240) E.L.T. 641 (S.C.) wherein it was held that an input to be eligible for Cenvat credit must have nexus with the manufacture of final product. Hon ble Bombay High Court after discussing this judgment has observed that in our opinion the ratio laid down by the Apex court in the case of Maruti Suzuki Ltd. (supra) in the context of definition of input in Rule 2 (l) of Cenvat Credit Rules, 2004 would equally apply while interpreting the expression activities relating to business in Rule 2 (l) of 2004 rules. No doubt that inclusive part of the definition of input is restricted to the inputs used in relation to manufacture of final product, whereas the inclusive part of the definition of input service extends to the services used prior to/during the course of/after the manufacture of final product. The fact that the definition of input service is wider than the definition of input would make no difference in applying the ratio in the case of Maruti Suzuki Ltd. (supra), while interpreti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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