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M/s Hindustan Zinc Ltd. Versus CCE & ST, Udaipur

2016 (7) TMI 1064 - CESTAT NEW DELHI

Cenvat credit - eligible input services - credit of service tax paid on (a) technical inspection and certification service w.r.t. the pipelines for transport of water from dams to the Dariba unit and b) service tax paid on installation service for laying of the said pipelines for transport of water to Dariba unit. - Held that:- The admitted facts are that water is essential in the manufacturing process, the pipelines are exclusively used for transport of water for the said purpose. The service t .....

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an, Member (Technical) Shri B.L. Narsimhan and Ms. Sukriti Das, Advocates - for the appellant. Shri Dharmendra Singh, Authorized Representative (DR) - for the Respondent. ORDER These two appeals are taken up together for decision as the issue involved are similar. The appellants are engaged in the manufacture of zinc and other products liable to Central Excise duty. They have ore concentration facility at Dariba where mined ores are brought for washing and concentration before sending to their s .....

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at these services were not entitled for credit as they are not integrally connected either directly or indirectly with the manufacture of concentrated ores. 3. The learned Counsel submitted that the water is transported from dam sites to Dariba unit for the purpose of washing the ore which is an essential activity for further concentration. The pipelines are exclusively used for transportation of said water. The service tax paid w.r.t. laying of pipeline and inspection/certification of said pipe .....

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d in 2015 - TIOL - 1371 - HC - MUM - ST. Tribunal in Parry Engg. & Electronics P. Ltd. vs. CCE & ST, Ahmedabad - I, II, III reported in 2015 (40) S.T.R. 243 (Tri. - LB) followed the same ratio to decide the credit eligibility. 4. The learned AR reiterated the findings of the lower Authorities. He submitted that the pipelines used for transport of water has no direct connection with the manufacturing process of concentrated ore. The service tax paid on laying of such pipeline has no direc .....

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tax paid is on services received w.r.t. pipelines. The reasoning given by the lower Authorities regarding these services being not connected with manufacture is not sustainable in view of the facts narrated above. The scope of input services as given under Rule 2 (l) of Cenvat Credit Rules, 2004 is not restricted to the location of the factory premises alone. The Hon ble Bombay High Court in Deepak Fertilizers & Petrochemicals Corpn. Ltd. vs. CCE, Belapur (supra) have examined in detail the .....

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ital goods on the one hand and input services on the other. Clause (i) above provides that the Service Tax should be paid on any input or capital goods received in the factory of manufacture of the final product. Such a restriction, however, is not imposed in regard to input services since the only stipulation in clause (ii) is that the input services should be received by the manufacturer of the final product. Hence, even as a matter of first principle on a plain and literal construction of Rul .....

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words of width and amplitude. The subordinate legislation has advisedly used a broad and comprehensive expression while defining the expression input service . Rule 2(l) initially provides that input service means any services of the description falling in sub-clauses (i) and (ii). Rule 2(l) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tribunal, .....

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