TMI Blog2016 (11) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant has failed to note that without capital expenditure, the proposed foundries would not have been established and to augment funds through GDRs, the Respondent had availed the services of M/s. Amas Bank. The definition of input service is of the widest amplitude in as much as the wording is used by a manufacturer whether directly or indirectly'. The inclusive definition has been held by various courts to be expansive and the services used in relation to setting up of the factory. Modernization and renovation are held to be eligible for input service credit. The wordings relating to business' is also very apt for the factual scenario in this case in as much as the funds were used for setting up of two units which has not been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent had issued GDRs (Global Depository Receipt) for USD 15 Million during April 2008. For the listing of these GDRs in the Luxemberg Stock Exchange, the Respondent had approached M/s. Amas Bank (Switzerland) Limited, the Lead Manager to the proposed GDR issue. Since the provider of service was outside India, and who did not have an office in India and the Respondent herein being the recipient of service had registered themselves under Business Auxiliary Service, for the service which was rendered to the Respondent by the said M/s.Amas Bank. The reason for denial of credit in the show cause notice was that the payment was by Chennai Unit for the other two units referred supra and the Chennai Unit ought not to nave availed the credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be decided in this case is whether the appellant (Respondent herein) is entitled for the input service credit of the service tax paid under Business Auxiliary Service under reverse charge mechanism. The Learned Commissioner (Appeals) has held that the GDR was to fund expansion of business of the appellant; that even though the service received was with reference to establishing green field foundry near Hyderabad and Sriperumbudur, the payment was made only by the appellant from Ennore Unit and the credit was availed by the said Ennore Unit; that the payment of service tax is not denied by the Department and have been received with reference to the business of the appellant (the Respondent herein emphasis supplied); that the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /CO/5/12 since this is only a counter to the Revenue's appeal; it is treated as a Written Submission. 3. Heard both sides in the matter. The Appellant was represented by Shri.R.Subramaniyan, Learned AC (AR) and the Respondent was represented by Advocate. The issue is as to whether the Respondents are right in the availment of credit for their payment rendered to M/s.Amas Bank for raising funds through GDRs for USD Million during April 2008. The definition of input service during the period of dispute i.e. April 2008 to November 2008 is as follows: Rule 2 (l) of the CENVAT Credit Rules 2004 [(1) input service means any service, (i) used by a provider of [output service] for providing an output service; or (ii) used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants in their ER-I returns, cannot be faulted and the further finding that the proviso to extended period cannot be invoked is proper. The reliance on the Tribunal ruling in the case of Sundram Brake Linings Ltd is no longer good law and the same stands overruled by the Madras High Court in CMA No.314/2011 dated 13.02.2015. The appellant has failed to note that without capital expenditure, the proposed foundries would not have been established and to augment funds through GDRs, the Respondent had availed the services of M/s.Amas Bank. The definition of input service is of the widest amplitude in as much as the wording is used by a manufacturer whether directly or indirectly'. The inclusive definition has been held by various ..... X X X X Extracts X X X X X X X X Extracts X X X X
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