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2016 (11) TMI 190 - CESTAT BANGALORE

2016 (11) TMI 190 - CESTAT BANGALORE - TMI - CENVAT credit - Input service - GTA service - Rule 2(l) of the CENVAT Credit Rules 2004 - Held that: - the Hon’ble High Court of Bombay in the case of CCE Nagpur Vs Ultratech Cement Ltd [2010 (10) TMI 13 - BOMBAY HIGH COURT ] has considered the issue at length and held that definition of input service under Rule 2(l) of CENVAT Credit Rules is very vide and covered not only services which are directly or indirectly used in or in relation to the manufac .....

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ous input services. Therefore all the six appeals can be disposed of by a common order. These appeals have been filed against two impugned orders passed by Commissioner (Appeals). Appeals Nos E/2582 & 2583/2010 are filed against order-in-appeal No. 251 & 252/2010 dated 24.09.2010 and Appeal Nos. E/2584 to 2587/2010 are filed against order-in-appeal No. 275-279/2010 dated 12/10/2010. 2. Briefly the facts of the case are that the appellant is a manufacturer of graphite electrodes and nippl .....

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rious input services. Thereafter a show-cause notice dated 21.10.2008 alleging that the appellant is not entitled for credit of freight as input service under CENVAT Credit Rules 2004 as the freight was incurred for the purpose of transportation of goods which is beyond the place of removal and these do not fall under the scope of definition of input service. Appellant filed reply to each show-cause notice substantiating their stand on eligibility of credit. The Additional Commissioner vide his .....

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rom January 2007 to March 2008. The learned counsel further submitted that this issue of CENVAT credit on outward transportation of final product before 1st April 2008 is clearly covered by the decision of the Honble Karnataka High Court in the case of CCE Vs ABB Ltd [2011(23)STR 97]. The Hon ble High Court in para 30 has observed as under:- 30. The definition of input service contains both the word means and includes , but not means and includes . The portion of the definition to which the wor .....

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y the manufacturer from the place of removal till it reaches its destination falls within the definition of input, service. What are the services that normally a manufacturer would render to a customer from the place of removal? They may be packing, loading, unloading, transportation, delivery, etc. Though the word transportation is not specifically used in the said section in the context in which the phrase clearance of final products from the place of removal is used, it includes the transport .....

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t service. However as the legislature has chosen to use the word means; in this portion of the definition, it has to be construed strictly and in a restrictive manner. Alter defining the input service used by the manufacturer in a restrictive manner, in the later portion of the definition, the legislature has used the word includes . Therefore, the later portion of the definition has to be construed liberally. Specifically what are the services which fall within the definition of input service .....

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or capital goods . But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the customer. Therefore, input, service includes not only the inward transportation of inputs or capital goods but also includes outwar .....

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movement of manufactured goods from the factory premises to the port of export is an input service and the same has been held in the case of CCE Rajkot Vs Rolex Rings (P) Ltd [2008(230)ELT 569 (Tri-Ahmd)] and also in the case of CCE Surat Vs Gujarat Reclaim & Rubber Products Ltd [2013-TIOL-881-CESTAT-Ahm]. Learned counsel further submitted that in the remaining appeals, i.e. Appeal Nos. E/2584-2587/2010 CENVAT credit has been denied on the following input services: courier service, staff we .....

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