TMI Blog2023 (11) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... e, place of removal including recruitment, quality control coaching and training and computer network. The transportation of inputs or capital goods and outward transportation upto the place of removal are, thus, provided under Section 2(l) - The aspect of removal has also been clarified by the circular dated 28.02.2015 issued by the Ministry of Finance that it is to be given from the Port/ICD/CFS and only when the shipping bill is filed by the manufacturer or exporter or goods are handed over to the shipping line, the exporter would have no control over the goods. The Cenvat Credit has been rightly granted to large extent by the Commissioner and the benefit which had been declined has been rightly allowed by the Tribunal by modifying the order of the Commissioner. There are no question of law arising for consideration as projected by counsel for the appellant-revenue - appeal dismissed. - HON'BLE MR. JUSTICE G.S. SANDHAWALIA AND HON'BLE MS. JUSTICE HARPREET KAUR JEEWAN Present: For the Appellant : Mr. Sourabh Goel, Sr. Standing Counsel, Ms. Shivani Sahani, Advocate, Ms. Manika Gupta, Advocate, Ms. Geetika Sharma, Advocate,. For the Respondent : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice provider. Similarly, for the I.T. Software services, it was noticed that the assessee had network of dealers all over the country who purchase vehicles and sell them to customers and a software/computerized network date base called the Dealer Management System was in operation. The same was the mode of communication for issuing circulars, instructions to dealers and service was integral part of the assessee and for management of data, maintenance and repair of the vehicles, after sale service in warranty period. Resultantly, the assessee was held entitled to avail benefit of the credit on the said service. 3. The Cargo Handling Services for Export and CHA issue was dealt with that the place of removal was the place of export and, therefore, there could not be any dispute on the said issue to avail credit on the said service. The warehouse and storage service was dealt with by noticing that the same had been availed for storage of vehicles which were meant for export and credit could not be denied which had been rightly given by the Commissioner. The land survey service (Real Estate Consultant), which was not related directly or indirectly to manufacturing activity, was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into two main parts, the 'mean part' and the 'includes part' and that the service used by a manufacturer in relation to final products would be the commercially expedient aspect which would make a service essential and integral to the manufacturer of the final goods for the primary motive of profit. Reliance was accordingly placed upon the judgment in Coca Cola India Pvt. Ltd. vs. Commissioner of Central Excise, 2009 (15) STR 657. Similarly, reliance was placed upon Ultratech Cement Ltd.'s case (supra). 7. The Commissioner vide its order dated 17.02.2014 came to the conclusion that the noticee was providing the service of man power recruitment and supply agency to ONGC and, therefore, service tax was payable by examining the sample copy of the invoice of the ONGC. It was noticed that the drivers had been provided by M/s. G4S and they had also raised invoices and, therefore, it was held that it was admissible service for claiming input service for the provision of output service of manpower recruitment and supply services and the admissibility was allowed. Similarly, the services provided under Mundra and JNPT Port were also held to be the entitlement by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon wherein, it was held that where the service tax paid on the civil work and on lease rentals was admissible once the land which was taken on lease to construct the factory and was being used by the manufacturer even indirectly by the manufacturer of the final products namely metal sheets and the benefit could not be denied. The relevant portion reads thus:- 6. The department contended that the said services were not eligible for Cenvat Credit and accordingly issued show cause notice for recovery of the credit along with interest and for imposition of penalty. The Commissioner confirmed the demand along with interest and imposed penalty. The Commissioner held as follows. Though the definition of input service is wide, it does not cover services that remotely or in a roundabout way contribute to the manufacture of the final products; that any and every connection however remote and indirect it may be is not contemplated by the definition of input service and that a line has to be drawn somewhere to avoid undue extension of the phrases directly or indirectly and in or in relation to by adopting a common sense approach. Immovable property is neither service nor goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the second part of Rule 2(l) i.e. the inclusive part. The definition of the words input service also specifically includes the services used in relation to setting up of a factory. Mr. Amrinder Singh rightly contended that it was not the appellant s case that the services were not used for the setting up of the factory. The doubt in this regard is set at rest by the second part of Section 2(l)(ii) which includes within the ambit of the words input service the setting up of a factory and the premises of the provider of the output service. The inclusive definition, therefore, puts the matter, at least so far as the payment for services rendered by the civil contractor for setting up the factory is concerned, beyond doubt. As the plain language of Section 2(l)(ii) indicates, the services mentioned therein are only illustrative. The words includes services establish the same. It can hardly be suggested that the lease rental is not for the use of the land in relation to the manufacture of the final product. Resultantly, the findings of the Tribunal as such denying the benefit had been set aside. The co-ordinate Bench in Maruti Suzuki's case (supra) also has tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, thus, provided under Section 2(l). Section 2(l) reads thus:- 2(l) input service means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the 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], The aspect of removal has also been clarified by the circular dated 28.02.2015 issued by the Ministry of Finance that it is to be given from the Port/ICD/CFS and only when the shipping bill is filed by the manufacturer or exporter or goods are handed over to the shipping line, the exporter would have no control over the goods. The relevant clause 6 reads thus:- Clause 6:- In the case of clearance of goods for export by manufacturer, exporter, shipping bill is filed by the manufacturer exporter and goods are handed over to the shipping line. After Let Export Order is issued, it is the responsibility of the shipping line to ship the goods to the foreign buyer with the exporter having no control over the goods. In such a situation, transfer of property can be said to have taken place at the port where t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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