TMI Blog2023 (7) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... e, unambiguously covered as input services under Rule 2 (I) (ii) of the CENVAT Credit Rules 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. Once it is covered in the main part of the definition of input service, unless it is specifically excluded under the exclusion part of the definition, the appellant is entitled to CENVAT credit on the input services used. The subject input services used in setting up of the plant have a direct nexus with the manufacture of final goods. Therefore, these input services used in setting up of the plant are covered within the ambit of means clause of the definition of input service . Accordingly, even if the word setting up is specifically excluded from the definition of input service , w.e.f. 01.04.2011, such services used in setting up of the plant would still qualify as an input service as per Rule 2(l) of CCR, 2004. Appeal allowed. - Excise Appeal No. 76189 of 2018 - FINAL ORDER No. 75613/2023 - Dated:- 8-6-2023 - HON BLE MR. P. K. CHOUDHARY, MEMBER (JUDICIAL) AND HON BLE MR. K. ANPAZHAKAN MEMBER (TECHN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; 5. In their submissions the Appellant stated that the aforesaid definition has three limbs- (1) means clause (2) includes clause (3) excludes clause . They submitted that the services in dispute availed prior to the commencement of commercial production have been inter alia used for setting up of the plant. These input services are directly linked to the manufacture of the final product inasmuch without availing the aforesaid services, the Appellant could not have set up the factory for manufacture of the goods. Hence, the input services utilized for setting up of the factory are covered with the ambit of means clause i.e. service used by a manufacturer whether directly or indirectly in or in relation to the manufacture of the final products . Accordingly, they contended that since the subject input services are covered in the main clause of the definition of input service, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cited the following decisions in support of their contention: Shell India Pvt. Ltd. v. Commissioner of Central Tax, Bangalore North 2021-VIL-820-CESTAT-BLR-ST maintained in 2023-VIL- 01-KAR-ST Reliance Corporate IT Park Ltd. v. Commissioner of Central Excise Thane-II 2023-VIL-136-CESTAT-MUM-ST Hindustan Zinc Ltd. v. Commissioner of CGST, Excise Customs, Udaipur 2021 (8) TMI 872-CESTAT New Delhi Kelogs India Pvt. Ltd. v. CCT, Tirupathi GST, 2020(7) TMI 414 CESTAT Hyderabad CCE, Kolkata v. Texmaco UGL Rail, 2019 (7) TMI 1651 CESTAT Kolkata Hindalco Industries Ltd. v. CCGST, Jabalpur, 2019 (5) TMI 1620- CESTAT New Delhi Linde India Pvt. Ltd. v. Commissioner of CGST CX, Rourkela 2023 (5) TMI 718-CESTAT Kolkata 9. The Ld Departmental Representative stated that setting up of the plant have been specifically excluded from the definition of input services and hence they are not eligible for the credit. 10. Heard both sides and perused the appeal records. 11. The issue involved in the present case is eligibility of CENVAT credit of input services availed for setting up of the plant. The definition of input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is specified in relation to any goods in the Section or Chapter notes of the Fourth Schedule as amounting to manufacturer; or iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer; the word manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account. 20. Thus, the term manufacture itself is very wide and includes anything incidental or ancillary to manufacturer. 21. For a service to qualify as input service under CENVAT Credit Rules, 2004 post 2011, the service in question need not be covered even by the very wide definition of manufacturer under section 2(f) of the Central Excise Act. Any service which is used not only in manufacture but also in relation to manufacture will also qualify a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
