TMI Blog2023 (4) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are of the nature which become liable to excise duty or service tax. The term activity related to business has to be read in relation to the activities which are related to the business which is of the nature which is taxable either under excise or under service tax. Moreover, the service of transportation of gas from the supplier of gas namely GSPC to the respondent premises is used to the fullest extent in the trading of gas. The trading of gas is not an activity leviable to service tax and therefore even in terms of Rule 6(1) of the CCR, 2004 no credit of the same would be admissible. The Commissioner has relied on the decision of the Tribunal in the case of CST, DELHI VERSUS CONVERGYS INDIA PVT. LTD. [ 2009 (5) TMI 50 - CESTAT, NEW DELHI] the commissioner has observed that the value of transportation is recovered from the customers. It is apparent that the value of transportation is recovered from the customers who buy the gas from the respondent. The value of transportation of gas is included in the cost of the gas sold by the respondent - In the instant case the facts are different and therefore the decision of Convergys India Pvt. Ltd has no application. It is see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pumps. 2.1 He argued that for the said output services, the services of supply of gas through pipeline is not an input service therefore no credit of the same could have been allowed. He argued that the Commissioner has held that since the respondents could not have availed the credit it was not possible for the respondents to utilize the said credit for payment of service tax on the services for which they were registered viz. like installation of new gas pipeline, Gas meters at the customer s end, repair and maintenance of pipelines network, Annual maintenance of gas pipeline network , sales promotion to GSPC etc. 3. Learned Advocate appearing for the Respondent argued that there is no need to establish one to one correlation between the input services received and the output services provided. He argued that the plain reading of Rule 3 of Cenvat Credit Rules, 2004 would indicate that there is no one to one correlation necessary between input services and output services for availing cenvat credit of input services. He argued that any input services received by the provider of output service is admissible as cenvat credit and can be utilized for payment of cenvat credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same cannot be sustained. 4. We have considered the rival submissions. It is seen that the respondents are purchasing gas from GSPC and receiving the same through the network of pipeline of GSPL. The respondents are paying service tax on the services of transportation of gas from GSPC to the respondent s premises. The said gas is sold by the respondent to various customers and supplied through the network of pipelines. It is quite clear that the respondents are engaged in the trading activity i.e. buying and selling of gas. The respondents are also involved in a. Installation and administration charges of gas pipe lines up to the end of customers. b. Annual Maintenance Charges of gas pipelines. c. Service charges received for sales promotion for sale of gas at CNG pumps tax. 4.1 It is seen that the network of supply from the respondent premises to the customer is an independent network which is not owned by GSPL. The respondents are paying service tax on the aforesaid activities in respect of the said network. The respondents are also engaged in promoting sales of the CNG pumps and paying service tax on the service charges received for the said sale promotion fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of natural gas from the premises of GSPC to the pumping station of the respondent was recovered from their customers. It has been argued that since the said cost has been recovered from the customers there cannot be a reason to disallow the Cenvat Credit on taxes paid for procuring such input services. For this argument reliance has been made on the decision of the Tribunal in the case of Convergys India Pvt. Ltd 2009 (16) STR 198 (Tri.- Del) wherein particular reliance has been made in 7.1 which reads as follows:- 7.1 In common parlance, if the cost of such goods and services becomes part of the cost of the final product or the cost of the output services, as the case may be, then they are understood as input and input services in relation to said final products or the output services. 4.6 The reliance placed by the Commissioner on the decision of Hon ble High Court of Bombay in the case of Ultratech Cement Ltd 2010 (20) STR 577 (Bom.) is based solely on the reading of para 29 of the order which reads as follows:- 29. The expression activities in relation to business in the definition of input service postulates activities which are integrally connect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of manufacturing cement and therefore, credit of service tax paid on outdoor catering services would be allowable. 35. The argument of the Revenue, that the expression such as in the definition of input service is exhaustive and is restricted to the services named therein, is also devoid of any merit, because, the substantive part of the definition of input service‟ as well as the inclusive part of the definition of input service‟ purport to cover not only services used prior to the manufacture of final products, subsequent to the manufacture of final products but also services relating to the business such as accounting, auditing..... etc. Thus the definition of input service seeks to cover every conceivable service used in the business of manufacturing the final products. Moreover, the categories of services enumerated after the expression such as‟ in the definition of input service‟ do not relate to any particular class or category of services, but refer to variety of services used in the business of manufacturing the final products. There is nothing in the definition of input service‟ to suggest that the Legislature intended to defi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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