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2015 (9) TMI 217 - CESTAT MUMBAI

2015 (9) TMI 217 - CESTAT MUMBAI - 2015 (40) S.T.R. 586 (Tri. - Mumbai) - Cenvat credit of service tax - services for inspecting vehicles providing MS plates at regional transport office - Held that:- "input service" means any service which is used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products. In the case in hand, it is undisputed that CNG can be filled only in those cylinders which are certified to be .....

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ss the cylinders are certified, the appellant cannot fill the gas in the said cylinder, is an activity in connection to their business of sale of CNG.

Certification of the cylinder did not take place in the manufacturing area, will also not carry the case of the revenue any further as the definition of "input service" does not restrict that the said service have to be rendered in the factory premises of the manufacturer - that when the cylinder are certified by an agency and service t .....

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Heard both sides and perused the record. 3. The issue involved in this case is regarding the Cenvat credit of service tax paid on the services for inspecting vehicles providing MS plates at regional transport office at Andheri, Tardeo and Ghatkopar. It is the case of the revenue that the services rendered by the service provider are not connected with the manufacturing activity of the appellant i.e. CNG and hence they are not input services, as also the definition of "input service" a .....

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ch test as the case may be. It is her submission that the appellant is responsible for the delivering the CNG into the cylinders only if they are approved as per the standard fixed by the Chief Controller of Explosives and in order to comply with such conditions instead of appointing the testing agency at different locations the testing agency is appointed at Regional Transport Office and the testing charges and certification charges are paid by the appellant; as a policy no vehicle is filled wi .....

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tipulated activities that follow the said expression in the definition are only illustrations and not limitation; she would then submit that the expression "in relation to" used in Rule 2(l) has a wider connotation, as held by the Apex court in the case of Solaris Chemtech Ltd. 2007 (214) ELT 481 (SC). Subsequently, she would submit that the definition of "input service" needs to be read keeping in mind the interpretation given by the apex court in respect of the words " .....

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the factory premises; as is the allegation in the show-cause notice, is the ratio decided by the Tribunal in the case of CCE vs. Deloitte Tax Services (I) P. Ltd. 2008 (11) STR 266, Brakes India Ltd. 2009 (13) STR 684, CCE vs. Hindustan Coca Cola Beverages P. Ltd. 2008 (10) STR 495. It is also her submission that the cost of testing the cylinder is included in the final cost of CNG which is dispensed by them; as per the Larger Bench decision in GTC Industries Ltd. 2008 (12) STR 468 which is uphe .....

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e final product CNG are cleared from the tanks into the retail outlet and subsequent filling of the cylinder is not a manufacturing activity as compression of the natural gas takes place and the said natural gas is delivered into the tank located at the outlet. It is also his submission that inspection of cylinder is taking place outside the manufacturing activity area as it is undisputed that the inspection of the cylinder is undertaken at Regional Transport Office. 6. I find that the issue inv .....

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,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market resear .....

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ther directly or indirectly, in or in relation to the manufacture of final products and clearance of final products. In the case in hand, it is undisputed that CNG can be filled only in those cylinders which are certified to be fit to carry the CNG and conform to the provisions of the Explosives Act and rules made thereunder. It is also mandated that there is restriction in filling of any cylinder with compressed gas unless fitness of such cylinder is approved by an agency authorised to do so. I .....

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