2009 (9) TMI 287

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....se of all the stay petitions and appeals by a common order. 2. After hearing both sides for sometime on the issue, we find that the issue lies in narrow compass. Hence, after waiving the condition of pre-deposit of the amounts involved, we take up the appeals itself for disposal. 3. The relevant facts that arise for consideration are:— The appellants are the manufacturers of bulk drugs and formulations. During the scrutiny of the ER-1 returns pertaining to the months of August 2006 to September 2007 (Unit-I) and for the months of August 2006 to February 2008 (Unit-III), it was observed that appellants availed Cenvat credit of duty paid on inputs/input services basing on the invoices issued by the input service tax distributor. It wa....

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....pellants are before us. 4. Ld. Counsel appearing on behalf of the appellant would submit that the issue involved in this case is now squarely settled by the decision of the Larger Bench in the case of CCE v. GTC Industries Ltd. [2008] 17 STT 63 (Mum. - CESTAT). He would draw our attention to the said decision, wherein the interpretation of rule 2 of the CENVAT Credit Rules, 2004 has been settled by the Larger Bench. 5. Ld. DR reiterates the findings of the ld. Commissioner (Appeals) on this point. He would submit that definition of the input service will clearly rule out the benefit of the CENVAT credit on the service tax paid on the services 'rent-a-cab, air travel agency, servicing of motor cycles etc'. 6. We considered the submi....

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.... 1958 SC 861. Further the definition of 'Input Services' uses the expression 'activities relating to business'. The word 'relating' further widens the scope of the expression 'activities relating to business'. In the case of Doypack Systems (P.) Ltd. v. Union of India 1988 (36) ELT 201 (SC), while interpreting the expression "in relation to" the Apex Court held as under :— '48. The expression "in relation to" (so also "pertaining to"), is a very broad expression which pre-supposes another subject-matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context, see State Wakf Board v. Abdul Aziz AIR 1968 Mad. 79, 81 paragraphs 8 and 10 following and ap....