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TMI Blog2022 (10) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... mproper availment of credit of tax paid on rental of lease-hold land between August 2010 and January 2015. As the chronological sequence is relevant to the determination of dispute, it would be appropriate to attempt a brief narration of the facts. 2. M/s Rashtriya Chemicals & Fertilizers Ltd had acquired land on leasehold from Mumbai Port Trust at Pir Pau Pier and constructed a storage tank for receiving of imported raw materials to be used at their factory which, in 2006, had been further leased to M/s Agesis Logistics Ltd that continued in their possession since then upto and including the period of dispute. The tax charged on rent billed by the lessor was taken in the CENVAT credit account during the period of dispute and proceedings w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e outset it must be noted that Rule 3(1) allows a manufacturer of final products to take credit inter alia of Service Tax which is paid on (i) any input or capital goods received in the factory of manufacturer of the final product; and (ii) any input service received by the manufacturer of the final product. The subordinate legislation in the present case makes a distinction between inputs or capital goods on the one hand and input services on the other. Clause (i) above provides that the Service Tax should be paid on any input or capital goods received in the factory of manufacture of the final product. Such a restriction, however, is not imposed in regard to input services since the only stipulation in clause (ii) is that the input servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ex facie contrary to the provisions contained in Rule 2(l). The first part of Rule 2(l) inter alia covers any services used by the manufacturer directly or indirectly, in or in relation to the manufacture of final products. The inclusive part of the definition enumerates certain specified categories of services. However, it would be farfetched to interpret Rule 2(l) to mean that only two categories of services in relation to inputs viz. for the procurement of inputs and for the inward transportation of inputs were intended to be brought within the purview of Rule 2(l). Rule 2(l) must be read in its entirety. The Tribunal has placed an interpretation which runs contrary to the plain and literal meaning of the words used in Rule 2(l). Moreov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards liability of which credit had been taken. 6. It is seen from the records that the appellant had availed credit of tax paid on 'input service' deployed in rendering of 'output service' but had utilized the credit for discharge of duty on 'output' cleared by them. The decision of the Hon'ble High Court of Bombay does not appear to have been considered either by the original authority or the first appellate authority. It would, therefore, be appropriate for the ascertainment of relevance of these decisions to the specific facts of the dispute. To enable this, the impugned order is set aside and the matter is remanded back to the original authority for subjecting the facts to the test of law as settled by the decision of the Hon'ble Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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