2013 (11) TMI 1303

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....w compass, appeal itself is taken up for disposal after allowing the stay petition. 2. Shri Dhaval Shah (Advocate) appearing on behalf of the appellant argued that Courier Services are utilised for sending documents relating to business activity and cenvat credit with respect to Courier Service is admissible. He relied upon the Honble High Court of Gujarat decision in the case of Commissioner of Central Excise, Ahmedabad-II vs. Cadila Healthcare Limited [2013 (30) STR 3 (Guj.)] and brought to notice of the Bench Para 5.3 of the judgment and emphasized that cenvat credit of Courier Service has been held to be admissible. He further relied upon the judgment of this very bench in the case of Meghmani Organics Limited vs. CCE, Ahmedabad [20....

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....f Universal Cables Ltd. v. Commissioner of Central Excise, 2007 (7) S.T.R. 310 (Tri.-Del.) and was of the view that the present case is squarely covered by the said decision. In the said case, the Tribunal held that the charges paid on courier service are charges for the delivery of finished goods, akin to outward transportation from the factory of the assessee to its customers. The definition of input service permits the credit of outward transportation upto the place of removal, which in this case is the factory gate from where the courier collects the parcel for further transportation. It was held that credit on outward transportation was not permissible. The adjudicating authority also was of the view that the notifications on which rel....

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....bsp;      4. I have considered the submissions made by both the sides. According to definition of input service, it means that any service used by the manufacturer directly or indirectly in or in relation to manufacture and clearance of final product up to the place of removal and includes the services used in relation to business activities. The lower authorities have taken into consideration only the first part of the definition which provides that input service means any service used by the manufacturer in or in relation to manufacture and clearance of final products up to the place of removal and have not taken into consideration the inclusive part of the definition. The inclusive part of the definition provides....