TMI Blog2018 (7) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities relating to business. If any one of these two tests is satisfied, then such a service falls within the definition of “input service” and the manufacturer is eligible to avail Cenvat credit of the service tax paid on such service.” An identical issue was considered by the Tribunal in the case of Heidelberg Cement India Ltd. Vs. Commr. of Central Excise, Bangalore [2016 (9) TMI 677 - CESTAT BANGALORE], wherein the consultancy services used for greenhouse gas emission reduction and Carbon Credit Management Services were held to be cenvatable. Appeal allowed - decided in favor of appellant. - APPEAL No. ST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement of M/s EYPL, Gurgaon with their clients, it appeared that the said success fees has been paid specifically for facilitating sale of CER s. It was noticed that the appellant has wrongly availed and utilized the service tax credit of ₹ 4,95,105/- during the month of June,2010 in respect of the Consultancy Engineering Services provided by M/s. EYPL , Gurgaon in relation to Carbon Credit Management Services , which appeared not to be covered under the definition of input service as contemplated under Rule 2(l) of the Cenvat Credit Rules, 2004. Therefore, a show cause notice dated 05.08.2013 was issued to the appellant proposing demand of ₹ 4,95,105/- attributable to Cenvat credit wrongly availed on the said su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly for power, cement, steel, textile, fertilizer, and many other industries which rely on fossil fuels. The major greenhouse gases emitted by these industries are Co2, methane, nitrous oxide, hydro flurocarbon (HFC) all of which increases the atmospheres ability to trap infrared energy and thus effect the climate. Since, the activity of earning carbon credits are closely related to business and manufacturing activity of the appellant therefore, the carbon credit is legally available to the appellants. 5. The learned Counsel also submitted that the Cement Industry are required to comply with the various environmental acts and regulations notified by the Ministry of Environment and Forests (MoEF), etc., which covers different spheres of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent-Revenue supported the Order In Appeal. 8. Heard both the parties and perused the records. 9. The only issue involved in the present case is whether the appellants are entitled to service tax credit on Consultancy Engineering Services‟ in relation to sale of Certified Emission Reduction. It is necessary to analyze the definition of Rule 2(l) of the Cenvat Credit Rules, 2004, which is reproduced herein below : RULE 2.(l) input service means any service, - (i) used by a provider of taxable services for providing an output service ; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore when a particular service not mentioned in the definition clause is utilized by the assesse /manufacturer and service tax paid on such service is claimed as Cenvat credit, the question is what are the ingredients that are to be satisfied for availing such credit. If the credit is availed by the manufacturer, then the said service should have been utilized by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities relating to business. If any one of these two tests is satisfied, then such a service falls within the definition of input service and the manufacturer is eligible to avail Cenvat credit of the service tax paid on such service. 10. I find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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