2015 (12) TMI 1269

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....vailed CENVAT credit of the service tax paid on these three services while the Revenue is of the view that the service tax paid on these services are not directly or indirectly connected with the manufacturing activity of the appellant. 4. On perusal of the records, I find that as regards the "transit insurance" and "insurance service", these are in respect of finished goods and goods exported which are manufactured and within the factory in respect of business of manufacture. If that so, these services are used by the appellant for his business activity. In my considered view the judgement of the Hon'ble High Court of Bombay in the case of Deepak Fertilizers & Petrochemicals Corpn. Ltd. - 2013 (32) STR 532 (Bom.) will squarely cover....

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.... of taxable service shall be allowed to take credit inter alia of the Service Tax leviable under Section 66 of the Finance Act, paid on the following : "(i) any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004." The expression "input service" is defined in Rule 2(l) as follows : "(I) "input service" means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the man....

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....(ii) is that the input services should be received by the manufacturer of the final product. Hence, even as a matter of first principle on a plain and literal construction of Rule 3(1) the Tribunal was not justified in holding that the appellant would not be entitled to avail of Cenvat credit in respect of services utilized in relation to ammonia storage tanks on the ground that they were situated outside the factory of production. The definition of the expression "input service" covers any services used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. The words "directly or indirectly" and "in or in relation to" are words of width and amplitude. The subordinate legislation has adv....

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....rds used in Rule 2(l). Moreover as we have noted earlier, whereas Rule 3(1) allows a manufacturer of final products to take credit of excise duty and Service Tax among others paid on any input or capital goods received in the factory of manufacturer of the final product, insofar as any input service is concerned, the only stipulation is that it should be received by the manufacturer of the final product. This must be read with the broad and comprehensive meaning of the expression "input service" in Rule 2(l).The input services in the present case were used by the appellant whether directly or indirectly, in or in relation to the manufacture of final products. The appellant, it is undisputed, manufactures dutiable final products and the stor....