TaxTMI 
TaxTMI 
2010 (9) TMI 583
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....le 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. He also imposed equal amount of penalty on the appellants under Rule 15(3) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. The break up of the demand is rent-a-cab services Rs. 27,920/- and catering services Rs. 80,063/-. The impugned order sustained the order of the Original Authority. The Commissioner (Appeals) found that the input services involved were welfare measures extended to its labour force by the assessee. These services did not relate to manufacture or business activity of the kind to facilitate business. The inclusive definition did not include within its scope activities undertaken by a business organization as being....
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....g case laws :- (1) CCE, Hyderabad v. Deloitte Tax Service India Pvt. Ltd. [2008 (11) S.T.R. 266 (Tri. Bang.)] (2) Mundra Port & Special Economic Zone Ltd. v. CCE, Rajkot [2008-TIOL-1691-CESTAT-AHM = 2009 (13) S.T.R. 178 (Tri.-Ahmd.)] 3. During the hearing, the Senior Manager of the assessee appeared and submitted that the assessee had to necessarily provide transport for its employees as the manufacturing facility was located in a remote place. For same reasons, the assessee also engaged outdoor caterers for providing food for its work force. Both the services were activities related to business. These were covered by the definition of input service under Rule 2(l) of Cenvat Cred....
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....CESTAT-MAD = 2010 (19) S.T.R. 172 (Tri.-Chennai)] 5. I have carefully considered the case records and rival submissions. There is no dispute that the impugned services are activities related to business of the assessee. The definition of input service in Rule 2(l) of Cenvat Credit Rules reads as under :- 2(l) "input service" means any service - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, upto the place of removal, and includes services used in relation to setting up, modernization, r....
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....he manufacture of the final products they would not be input services as envisaged in Rule 2(l). 6.1 I find that this reliance is misplaced. As the Apex Court did not consider the statutory definition of 'input service' in the said judgment, in my view, the ratio of the judgment of the Apex Court in Maruti Suzuki Ltd. case cannot be applied to interpret the scope of 'input services'. In the definition of 'input service' also, there is a specific and substantive part as well as an inclusive part. In the inclusive part, activities related to business are also included. Activities such as credit rating & share registry figure among the items specifically listed. By no stretch of imagination, activities such as credit rating and share r....
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....ive. 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 made exhaustive. The next expression considered from the definition was 'such as'. The words 'such as' were held as illustrative and not exhaustive. In the context of business, those were services, related to the business. The expression business was an integrated/continuous activity and was not restricted to mere manufacture of the product. Therefore, activities in relation to business could cover all the activities that were related to the functioning of a business. The term business therefore, could not be given a restricted definition to say that business of a manufacturer was....