2010 (2) TMI 284

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.... Vijaya kumar, Advocate,for the Respondent. [Order]. - This is an appeal filed by the Revenue. The respondents are a 100% EOU, engaged in manufacture of Instant Coffee. For packing their final products, they procured metal containers (tins) from manufacturers of such metal containers. For the safe and convenient transport of the metal containers, the respondents sent suitable plastic pallets to....

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.... from the material on record of the proceedings that, the pallets aid the efficient handling of tins supplied to CCL and since tins directly have a role to play in the manufacture of final products viz, packing, the transport of pellets to and by CCL are services in relation to procurement of inputs by CCL, and for the same reason such transport activity becomes an input service and service tax pa....

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....ute under consideration to be revenue neutral in nature." 2. In the appeal filed by the Revenue, the ground raised is that the credit in relation to service tax paid on transportation cannot go beyond transport up to the place of removal. This is because as per Rule 2(l) of the Cenvat Credit Rules, 2004, input service means any service used by the manufacturer, whether directly or indirectly, i....