TaxTMI 
TaxTMI 
2014 (12) TMI 1139
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....d for three categories of works. The first category of jobs for which the manpower supply was used was cane area survey, sugar cane development by educating the farmers by various means to get good quality sugar cane. The second type of jobs for which the manpower supply was used was for the jobs related to supply of sugar cane to the factory, its weighment and unloading at the factory. The third type of jobs for which the manpower supply was used was cleaning of the yard within the sugar mill. The Department was of the view that the jobs for which the manpower supply by the contractors was used have no nexus whatsoever with the manufacture of sugar and molasses and, therefore, these services would not be eligible for Cenvat credit. Accordi....
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....eighment of the sugar cane and unloading of sugar cane at the factory, that these services are relating to procurement of inputs, which was specifically covered by the definition of 'input service' during the period of dispute, that as regards the manpower used for cane area survey and sugar cane development work, this activity has close nexus with the business of manufacture of sugar, as good quality sugar cane is a must for any sugar factory, that Hon'ble Bombay High Court in the case of CCE, Nagpur vs. Ultratech Cement Ltd. reported in 2010 (260) E.L.T. 369 (Bom.) in para 28 and 29 of the judgment has held that the definition of 'input service' in Rule 2 (l) of Cenvat Credit Rules, 2004 is very wide and covers not only services which are....
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....anufacture of final products as well as business of manufacture of final product would qualify, as input service under Rule 2 (l) of the Cenvat Credit Rules, 2004, that the activity of cane area survey and sugar cane development has close nexus with the business of manufacture of sugar, as good quality sugar cane is necessary for the business of manufacture of sugar and that in view of this, the manpower supply service used for cane area survey and sugar cane development would also qualify for Cenvat credit. He, therefore, pleaded that the impugned order is not correct. 4. Shri V.P. Batra, the learned DR, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that the sugar cane area survey and su....
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....cture of the final product. Therefore, the Cenvat credit in respect of this activity would be admissible. 7. As regards the weighment of sugar cane and its unloading at the factory, this activity has to be treated as activity in relation to manufacture of sugar and molasses. Therefore, I hold that Cenvat credit would be admissible in respect of this activity also and the same has been wrongly denied. 8. As regards the cane area survey and sugar can development by educating the farmers and by other means, the purpose of this activity is to ensure supply of good quality sugar cane, which is a must for any sugar manufacturing business. In view of this, this activity has to be treated as having nexus with manufacturing business of the appella....
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....Rule 2 (l) of the Cenvat Credit Rules'. In this judgment the Hon'ble Bombay High Court also discussed the Apex Court's judgment in the case of Maruti Suzuki Ltd. vs. Commissioner reported in 2009 (240) E.L.T. 641 (S.C.) wherein it was held that an input to be eligible for Cenvat credit must have nexus with the manufacture of final product. Hon'ble Bombay High Court after discussing this judgment has observed that in our opinion the ratio laid down by the Apex court in the case of Maruti Suzuki Ltd. (supra) in the context of definition of input in Rule 2 (l) of Cenvat Credit Rules, 2004 would equally apply while interpreting the expression 'activities relating to business' in Rule 2 (l) of 2004 rules. No doubt that inclusive part of the def....