Cenvat credit on detective services used for market research and tracing spurious manufacturers was held admissible.

Service tax paid on detective services used to survey the market and identify manufacturers and sellers of spurious products was held admissible as Cenvat credit. Rule 2(l) of the Cenvat Credit Rules, 2004 was applied to cover services used directly or indirectly in relation to manufacture and clearance of final products, including market research and other business-related activities. Because the detective services had a direct nexus with the assessee's business operations and were used to protect its market presence, they fell within the inclusive definition of input services and the credit was allowed.

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Issues: Whether service tax paid on detective services used for surveying the market and identifying spurious product manufacturers was admissible as Cenvat credit under the definition of input services.

Analysis: Rule 2(l) of the Cenvat Credit Rules, 2004 extends to services used directly or indirectly in relation to manufacture and clearance of final products, and its inclusive part covers market research and activities relating to business. The detective services obtained were used to survey the market and identify persons manufacturing and marketing spurious products of the appellant. Such services had a direct nexus with the appellant's business activities and fell within the scope of market research and business-related services under the inclusive definition of input services.

Conclusion: The credit was admissible to the assessee.

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