TaxTMI 
TaxTMI 
2010 (9) TMI 344
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....e Commissioner had followed decisions of the Tribunal in the case of CCE v. GTC Industries Ltd. [2008] 17 STT 63 (Mum. - CESTAT) (LB) and in the case of Stanzen Toyotetsu India (P.) Ltd. v. CCE [2009] 21 STT 321 (Bang. - CESTAT). 2. In the appeal filed before the Tribunal, the revenue has relied on the definition of input service contained in Rule 2(l) of CCR. It is submitted that the insurance service and outdoor catering service impugned are not covered by the definition of input service in the CCR. They are neither used in relation to the manufacture or clearance of the final products nor are they activities relating to business. The Commissioner had relied on the decision of the Tribunal in GTC Industries case (supra) which was not accepted by the department. The department had filed an appeal against the said order. Reliance is also placed on the judgment of the High Court of Bombay in the case of Indorama Synthetics (India) Ltd. v. CCE Nagpur. The revenue has also relied on following case laws : (i) CCE v. Mahindra Sona Ltd. [Order Nos. A/108-113/2008, dated 18-1-2008]; (ii) Rajhans Metals (P.) Ltd. v. CCE [Final Order No. A/2438/2007/WZB/Ahd., dated 7-9-2007]; (i....
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.... carefully studied the case records and considered the submissions made by the learned SDR. As regards admissibility of credit of service tax paid for outdoor catering, dispute stands decided in favour of the respondents vide Final Order Nos. 1274/2009, dated 22-10-2009; 1297-1298/09, dated 28-10-2009 and 1313 to 1316/2009, dated 28-10-2009 in the assessee's own case. As regards the Group Medical Insurance of the employees, the dispute stands settled in favour of the assessee by a decision of this Tribunal in Stanzen Toyotetsu India (P.) Ltd. case (supra). I reject the appeal of the revenue on credit relating to these services. In GTC Industries Ltd. case (supra), the Tribunal had approved the principle that credit of service tax paid on those services that form part of the assessable value on which excise duty is paid has to be allowed. In the instant case, service tax paid for insuring family members of the workers cannot be held to be on the same footing as the tax paid on insurance provided for the employees. Similarly, insurance service availed to cover directors' and officers' liability on foreign tour would be admissible if the activity pertains to business and the amount....
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....r networking, credit rating, share registry and security, etc. Obviously the activities such as credit rating and share registry are not used by the manufacturer in or in relation to the manufacture of final products. In the case of the definition of input services, therefore, the inclusive part enlarges the scope of the specific and substantive part of the definition. Activities relating to business need not necessarily be used in or in relation to the manufacture of final products. 7. The definition of input services contained in the substantive part is enlarged by the inclusive part. This is obvious from the meaning of 'includes' as read by the Apex Court. In P. Kasilingam v. P.S.G. College of Technology AIR 1995 SC 1395, the Apex Court explained the import of "includes" in a definition as follows : "The word 'includes' when used, enlarges the meaning of the expression defined so as to comprehend not only such things as they signify according to their natural import but also those things which the clause declares that they shall include. The words 'means and includes' on the other hand, indicate "an exhaustive explanation of the meaning which, for the purposes of the Act, ....
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....answered them in the affirmative. (a) Whether services of advertising and marketing procured by the Appellants in respect of advertisements for aerated waters are covered by the definition of the words "input services" as defined in Rule 2(l) of the Cenvat Credit Rules, 2004, when admittedly the Appellants manufacture concentrates exclusively used for the manufacture of the respective aerated waters which are advertised by the Appellants? (b) Whether the advertisement or sales promotion of aerated waters undertaken by manufacturer of concentrate is covered by the inclusive part of the definition of "input service" contained in Rule 2(l) of the CENVAT Credit Rules, 2004? 8.2 The Hon'ble High Court considered expressions used in the definition of input service pertinent to decide the controversy. The definition of input service used the terms 'means' and 'includes'. Relying on Regional Director, Employees' State Insurance Corpn. case (supra), the High Court held that the expression 'means and includes' was exhaustive. By the word 'includes' services which may otherwise have not come within the ambit of the definition clause were included and by the words 'means' these were m....