TMI Blog2017 (8) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... said services on account of lack of nexus is wrong and not sustainable in law - appeal allowed - decided in favor of appellant. - E/50285/2017-SM - A/55393/2017SM[BR] - Dated:- 20-7-2017 - Mr. Ashok K. Arya, (Technical Member) Present Ms. Sukriti Das, Advocate for the appellant Present Ms G.R. Singh, DR for the respondent ORDER Per: Ashok K. Arya 1. The appellant namely, M/s Hindustan Zinc is in appeal against Order in Appeal No.188/2016 dated 21/11/2016 whereunder input service credit on Consultancy and Certification Services used in relation to modernization of their power plant and also to reduce the emissions of Green House Gases at safe levels as per Kyoto Protocol, for which targets has been fixed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue reiterates the submissions given in the impugned order. 5. After having carefully considered the facts of the case and submissions of both the sides it appears that the matter is covered by the Tribunal s decision in the case of Heidelberg Cement India Ltd. V/s Commissioner of C. EX., Bangalore-I - 2017 (47) STR 98 (Tri.-Bang). The Tribunal in the said case has observed as follows : 6.The only issue involved in the present case is whether the appellants are entitled to service tax credit on Consultancy Services used for Clean Development Mechanism (CDM) Service in relation to Carbon Credit Management Service . It is necessary to analysis the definition of Rule 2(l) of the Cenvat Credit Rules, 2004, which is reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts, as long as they are related to the manufacturing business of the assessee. A service would qualify as input service even if not covered by the means portion, if it satisfies the includes portion of the definition. In other words, in order to qualify as an input service, a service has to fall either within the means part or includes part of the said definition. The Hon ble High Court of Bombay in the case of Commissioner of C.E., Nagpur v. Ultratech Cement Ltd. [2010 (260) E.L.T. 369 (Bom.)] has observed in Para 27 as under : The definition of input service as per Rule 2(l) of 2004 27. Rules (insofar as it relates to the manufacture of final product is concerned), consists of three categories of services. The first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. Various services are set out in the definition expressly, as constituting input service. It also includes transportation of inputs or capital goods and outward transportation up to the place of removal. Therefore the test is whether the service utilized by the assessee is for the manufacture of final product. Such service may be utilized directly or indirectly. Such service may be in the nature of transportation of inputs or capital goods, up to the factory premises or if the final product is removed from the factory premises for outward transportation up to the place of removal. It is an inclusive definition. The services mentioned in the Section are only illustrative and it is not exhaustive. Therefore when a particular service not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng manufacturer to use fossil fuel to develop their plant in such a manner so as to reduce the carbon emission which vitiates atmosphere. The revenue‟s contention that such earning of carbon credit from the United Nations company was not liable to Service Tax and inasmuch as the services of E Y were availed for earning of such credits, the appellant is not entitled to avail the credit. I find no merits in the above contention of the Revenue. The 6. services availed from M/s. Ernst Young Pvt. Ltd., were admittedly for modernisation of the power plant of the appellant. Such power plant is used for manufacture of paper which is liable to Central Excise. In addition, if the appellant, by way of entering into an agreement with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The services were used for modernisation of plant. As a result, the appellant might have made CERS income, which is in no way connected with the availment of Cenvat credit. As the paper being manufactured by them is leviable to Excise duty, I find no reason to deny the benefit of Cenvat credit availed on the said services. Accordingly, I set aside the impugned order and allow the appeal with consequential relief to the appellants. 7.After considering the submissions of both the parties and also on going through the judgments cited supra, I am of the view that the service tax paid for providing Consultancy Services in relation to greenhouse gas emission reduction and carbon credit management service as per guidelines under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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