TMI Blog2023 (5) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... olidate the procedural issues relating to service tax, including those relating to availment and utilization of Cenvat credit. This circular supersedes all previous circulars/clarifications/instructions issued on these subjects. It is, however, clarified that this circular is intended only to clarify the scope of the Act and the rules, and therefore, in the event of any inadvertent inconsistency or contradiction between this circular and the provisions of the Act or the rules, the latter shall prevail. It is, therefore, clear that for a manufacture/consignor, the eligibility to avail credit of the service tax paid on the transportation during removal of excisable goods would depend upon the place of removal as per the definition. In cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elates to subsequent period are also involved in the impugned order-in-Original. Total three Show Cause Notices are described as under:- Sl. No. SCN No. Date CENVAT Credit amount of Central Excise Duty (in ) Period Involved Category-wise brake up Basic Cess S H Edu. Cess 1 29/JC/Bol/07 Dated 03.10.2007 994909 19899 - Jan., 05 to Feb., 07 1. Business Auxiliary Ser. 29691 553 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AL 63,85,203 1,27,665 53,607 TOTAL DUTY INVOLVED 65,66,475 2. In all the above three Show Cause Notices, the moot point of the issue is whether Input Service on which Service Tax paid and credit availed by the assessee are eligible services for taking credit in terms of CENVAT Credit Rules, 2004. The Adjudicating authority vide the Orderin- Original dated 06.08.2010 has passed the following order:- (i) The demand and recovery of an amount of Rs.65,66,475/- (Rupees Sixty-five Lakh Sixty-six Thousand Four Hundred and Seventy five only) from the said a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue for the purpose of charging duty of excise as per rule for delivery at factory gate. The assessee have not declared any other Marketing Organization viz. depot and/or dealer etc. for sale of their goods. On comparison of the marketing pattern of the finished goods vis- -vis definition of input services, place of removal and provisions of Rule 3 of the CENVAT Credit Rule, 2004 governing admissibility of CENVAT Credit as mentioned above, it is quite clear that to qualify as input service the relevant services have to pass the criterion laid down in the statute itself. That means all the input services used by the said assessee shall be covered under the definition of input service as defined under Rule 2(l) of CENVAT Credit Rules, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Gujarat High Court in the case of Commissioner v. Dynamic Industries Ltd. [2014 (307) E.L.T. 15 (Guj.)] which has held that the definition of input service cannot be given a restricted meaning. Further, he relied upon various case laws that, on a collective reading, have held that credit pertaining to the disputed input services are eligible. 7. Heard both sides and perused the appeal records. 8. We find force in the submission of the Ld.Counsel. On a careful reading of the definition of input service, it can be observed that it was never the intent of the legislature to give it a restricted meaning. 9. Further we find that Master Circular was issued clarifying the procedural issues relating to Service Tax being Circular No.97/8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds determination taking into account the facts of an individual case and the applicable provisions. The phrase place of removal has not been defined in Cenvat Credit Rules. In terms of sub-rule (t) of Rule 2 of the said rules, if any words or expressions are used in the Cenvat Credit Rules, 2004 and are not defined therein but are defined in the Central Excise Act, 1944 or the Finance Act, 1994, they shall have the same meaning for the Cenvat Credit Rules as assigned to them in those Acts. The phrase place of removal is defined under section 4 of the Central Excise Act, 1944. It states that, - place of removal means (i) A factory or any other place or premises of production or manufacture of the excisable goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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