AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2011 (3) TMI 1373
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....our photography expenses in respect of the inaugural function of Kengeri Police Station. The expenses incurred in respect of Catering service and Mediclaim Insurance for the said function has been accepted. But they have rejected the input service tax credit on Shamiyana services and photography services. 3. The assessee contends that any input service used directly or in relation to manufacturing activity is eligible for input service tax credit. The term 'activities relating to business' has been amplified with the word "such as" auditing, accounting, financing, recruitment, and quality control, coaching and training, computer networking, credit rating share registry and security etc., It is not exhaustive and therefore expenses suc....
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....ubstantial questions of law were framed for consideration on 7-1-2009. "(1) Whether the Tribunal is right in considering the bona fide belief of the assessee as a valid ground to set aside the allegation of intention to evade duty and wilful suppression given in the facts and circumstances of the case to attract proviso to Section 11A of the Central Excise Act, 1944? (2) Whether the Tribunal is right in concluding that the allegation of "intention to evade duty and wilful suppression of facts" had not been brought out in the show cause notice when the show cause notice alleged the said suppression of facts in the light of Hon'ble Apex Court judgment in the case of Continental Foundation Joint Venture v. Commi....
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....ses do not fall within the definition of activities relating to business. The authorities have taken a very narrow meaning of the definition of input service and the inclusive definition includes these expenses. 6. Per contra, the learned counsel appearing for the revenue submitted that as rightly pointed out by the Tribunal, social functions to entertain the employees, Rajyostava function and inauguration of police station cannot be brought within the ambit of activities relating to business and therefore the order passed by the Tribunal is legal and valid and does not call for interference on this ground. However he assails the remaining portion of the order where the Tribunal has held that the demand is unsustainable as there was n....
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....d used is 'means' and therefore, it is exhaustive. It is thereafter the legislature has consciously used the word 'and includes' which is extensive. Therefore, after specifically referring to the output service and input service rendered directly or indirectly in the manufacture of final products and clearance of final products, the inclusive definition sets out various services and further enlarge the scope by saying that all activities relating to business constitutes input service. One such activity relating to business which is specifically provided for, is the security of the establishment. The said inclusive definition is not exhaustive. It includes accounting, auditing, financing, credit rating, share registry etc. These are in no wa....
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....ng way in preserving peace in the establishment, and security of the establishment is well protected. 9. Therefore it cannot be said that the expenses incurred in this connection and claimed as CENVAT credit is not in connection with activities relating to business. The assessee is in no way personally benefitted by any of these expenses as there is no personal interest involved. On the contrary it shows they are concerned with the culture of the State, the welfare of its employees and a celebration of such a momentous occasion will go a long way in preserving the peace in the locality. Therefore in our view those expenses incurred towards putting up Shamiyana, photography services, etc., do fall within the activities relating to busi....
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.... be input service under Rule 2(l) of 2004 Rules." 11. There cannot be any quarrel regarding the said proposition of law. As stated therein, the definition of input service is more exhaustive than input. Whether it is input or input service there should be nexus or an integral connection with the manufacture of final products as well as the business activity. At the same time, because of the exhaustive definition of input service, the scope of nexus or integral connection is also explained and infact is specifically provided. Therefore to find out whether there is a nexus or integral connection with the manufacturer of final products. We have to keep in mind the exhaustive definition contained in input service and then the word used th....