2007 (4) TMI 1

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....earned SDR for Revenue, we find that said demand stands confirmed against the applicant in respect of the service tax paid on transport of goods from their factory for delivery at the customer's premises. Rule 2 (1) of Cenvat Credit Rules, 2004 allows an assessee to avail the credit of the duty paid on the input services received. It is appellant's contention that outward transportation of finished goods manufactured by them would fall within the definition of "input service" as defined under Rule 2 (1). For the above purpose, reliance has been placed on the decision of Commissioner (Appeal) in case NHK Spring (India) Lt reported in 2006 (204) ELT 189 (CA). Our attention has been further drawn to the Tribunal's order as reported....

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.... 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 from the place of removal (Emphasis provided) and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities releating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training,....

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....ctory for delivery at the customers place. The Adjudicating Authority has disallowed the credit by relying upon provisions of Rule 2(1) of Cenvat Credit Rules, 2004. On the other band, the contention of the Appellants is that transportation of goods from the factory for delivery at the customers premises would come within the definition of "input service" under the Cenvat Credit Rules. According to them, the definition of "input service" under the  Cenvat Credit Rules. According to them, the definition of input service is an inclusive definition covering inward transportation of inputs or capital goods and outward transportation upto the place of removal and that transportation of goods from the factory gate to the customer premises wo....