Input service credit for manufacturing-related services upheld where services were used in business operations connected with manufacture.

Input service credit under Rule 2(l) of the Cenvat Credit Rules, 2004 was examined for services used in manufacturing operations, including CHA services, transportation from factory to port, banking charges or commission, employee transportation, and construction services for machinery installation. The principle applied was that credit is admissible where the services are availed in the course of business operations connected with manufacture. On that basis, the assessee was held entitled to input service credit on the disputed services.

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Issues: Whether Cenvat credit of input services such as CHA services, transportation from factory to port, banking charges or commission, employee transportation, and construction services for installation of machinery was admissible under Rule 2(l) of the Cenvat Credit Rules, 2004.

Analysis: The services in question were considered in the context of their use in the assessee's business of manufacturing. Reliance was placed on the principle that input service credit is available for ices availed in the course of business operations connected with manufacture.

Conclusion: The assessee was held entitled to input service credit on the services used in its business of manufacturing.

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