TMI Blog2017 (8) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... has been deleted, but the illustrative services viz., Accounting, Auditing, Financing, Recruitment and quality control, Coaching/training, Computer Networking, Credit Rating, Share Registry, Legal Services, Security, Business Exhibition etc., even though directly not related to manufacturing activity, being not used inside the factory premises, but continued to remain in the said definition of input service. Needless to mention that these services are even though not directly linked to the manufacturing activity in the factory premises of the assessee but connected or related to the business of manufacturing activity which also involve marketing/sale of the manufactured goods - It cannot be denied that Courier Service involves a host of us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods and the 'Courier Service' has been used by them in or in relation to sending/receiving of the 'samples', documents, and ;finished goods'. It is his contention that for the period prior to 01.4.2011 credit of service tax paid on 'Courier Services' in dispatching finished goods has been held to be admissible by the Hon'ble Gujarat High Court in the case of Cadila Healthcare Ltd 2013(30)STR.3 (Guj.). In holding that Cenvat Credit of the service tax paid on 'Courier Service' is admissible, their Lordship applied the principle laid down for interpretation of the definition of input service prescribed at rule 2(l) of CCR,2004 in the context of admissibility of credit relating to outward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter Net-working, Credit Rating, Share Registry, Security, Business Exhibition, Legal Service etc., continued to remain in the domain of 'Input Services'. These services are definitely used outside the factory premises in furtherance of the activity of Sale/Marketing, Finance etc. and directly not connected with the manufacture of goods. Also, the 'courier service' does not fall under the negative list of the services excluded from the scope of the amended definition of input service. Therefore, 'courier service' cannot be said to be fall outside the scope of the definition of input service w.e.f. 01.4.2011.. 3. The Ld Advocate further submitted that the Tribunal interpreting the scope of the amended definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to the definition of Input Service prescribed at Rule 2(l) of CCR,2004 with effect from 01.4.2011, that is, consequent to the deletion of the expression activities relating to business, such as the 'Courier Services' would fall outside the scope of the definition of Input Services and hence not eligible to credit. The amended Rule with effect from01.04.2011 reads as follows : (l) input service means any service,- (i)..................................................................... (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 modern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless the activity has a direct nexus with the manufacturing of goods in the factory premises, post deletion of the expression activities relating to business, could not entitle the assessee to avail credit on the Service Tax paid on services, including 'Courier Services' which are not directly connected with the manufacturing activity. It cannot be denied that 'Courier Service' involves a host of uses relating to the activity of manufacture and sale of goods. For example, the documents relating to technical expert's opinion, sample testing report, sending of samples, machine catalogue etc., are received and dispatched by utilizing the services of Courier and it cannot be said that these are de hors of the activities of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
