TMI Blog2019 (4) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be. Credit has to be allowed - appeal dismissed - decided against Revenue. - Appeal No. E/131/2012 - ORDER NO FO NO. 77252 OF 2018 - Dated:- 7-8-2018 - SHRI P.K.CHOUDHARY, MEMBER (JUDICIAL) Shri S.S. Chattopadhyay, Supdt. (AR) for the Appellant (s) Shri Partha Banerjee, Adv. for the Respondent(s) ORDER PER SHRI P.K.CHOUDHARY The facts of the case in brief are that the respondents availed credit of service tax amounting to ₹ 22,28,041/- paid towards outward freight under Rule 3 of the Cenvat Credit Rules, 2004 during the period from March, 2005 to December, 2007. Show Cause Notice dated 4.2.2008 was issued alleging wrong availment of credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (l) input service means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales, promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality contro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned. 5. Coming back to the first part of the definition as to what input service means, the Full Bench of the CESTAT held that all input services which are used by the manufacturer, whether directly or indirectly, in or in relation to manufacture of final products and clearance of final products from the place of removal are concerned, they are treated as input services and Cenvat credit in respect of expenditure incurred in relation to such services would be admissible. The expression with which the CESTAT was concerned, and which was the subject matter of discussion, was as to what would be the meaning of from the place of removal . Obviously, any input service given for clearance of the final products from the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrued liberally as it is extensive. The exhaustive portion of the definition of input service deals with service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. It also includes clearance of final products from the place of removal. Therefore, services received or rendered by 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he place of removal. While dealing with inward transportation, they have specifically used the words inputs 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 outward transportation of the final product upto the place of removal. Therefore, in the later portion of the definition, an outer limit is presc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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