TMI Blog2023 (10) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... a, therefore, the input service namely erection, commissioning and installation for setting up of new plant have a direct nexus with the manufacturing activity of the appellant, therefore, the said service duly qualifies as input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004, therefore, the appellant is entitled to take cenvat credit on the services in question for setting up of plant even after amendment w.e.f. 01.04.2011. There are no merit in the impugned order, the same is set aside - appeal allowed. - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL) Shri Jnanesh Mohanty Ms. Shreya Mundhra, both Advocates for the Appellant (s) Shri S.Mukhopadhyay, Authorized Representative for the Revenue ORDER The appellant is in appeal against the impugned order wherein cenvat credit has been denied holding that the cenvat credit on input service used for setting up of plant/factory is not entitled to them in terms of Rule 2(l) of the Cenvat Credit Rules, 2004. 2. The facts of the case are that during the course of audit for the period December 2012 to June 2013, it was observed that in course of setting up of the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 93 of 2017 4 Notification No. 03/2011 dated 01.03.2011, w.e.f.01.04.2011. Thus it is necessary to look into the definition of 'input services', w..e.f.01.04.2011. 7. The relevant portion of Rule 2(I) w.e.f 01.04.2011 is as under:- input service means any service.- (i) Used by a provider of [output service] for providing an output service ; or (ii) Used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal. And includes services used in relation to modernization, renovation or repairs of a factory, remises, 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, 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. 8.. We observe that the aforesaid definition has thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (I) (2) The words and expressions used in these rules and not defined but defined in the Excise Act shall have the meanings respectively assigned to them in the Excise Act. 19. Since the term manufacture is not defined in the Rules, the definition under the Central Excise Act, 1944 must be considered. Section 2(f) of the Central Excise Act defines manufacture as follows 2(f) manufacture includes any process i) incidental or ancillary to the completion of a manufactured product; ii) 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 Excise Appeal No. 76189 of 2018 6 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 excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta, allowed CENVAT Credit of the service tax paid towards setting up of plant. The relevant portion of the decision is reproduced below: 6. The issue before us is whether credit is available on Coal handing Plant (CHP), which has been set up by the appellant for evacuation of coal from its mining premises. It is relevant to note the preamble to the contract which reads as below:- .. From the above, it appears that the purpose of setting up of the CHP is to load the coal into the railway wagons in an automated manner after the coal is crushed into the desired size. It is not in dispute that the service used by the appellant is for modernization of the coal loading process. The definition of input service specifically includes services received by a manufacturer for modernization of a factory. We have also perused the decision of the Tribunal in the case of Pepsico India Holdings (P) Ltd., (Supra) relied upon by the appellant. The Tribunal has observed that without setting up of the factory, there cannot be any manufacture and the mere fact that the words setting up of factory has not been retained in the definition of input services post 01.04.2011, the same will not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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