2015 (11) TMI 1510

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....ship fee. 2. The facts of the case are that the appellant is engaged in the manufacture and sale of water heater and geyser falling under Chapter Heading 8516 of the first schedule of Central Excise Tariff Act, 1985. The appellant availed Cenvat credit of inputs and input services used by them in or in relation to manufacture of final products. The appellant on 25.07.2006 availed Cenvat credit of service tax of Rs. 10,173/- towards annual subscription of a club vide Cenvat entry no. 738 & 739 and declared this fact in periodical return. During the CERA audit it was observed that the Cenvat credit on club membership is not allowed as the said service is not used directly or indirectly in or in relation to manufacture of final product and ....

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.... definition of input services. He takes me through the definition of input service which is reproduced below:- As per Rule 2(1) of the said Rules 'input service' means any services :- (i) used by 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 up to the place of removal. 7. He further submitted that the club and association service is used in or in relation to business activity. In support of his submission, he relied upon the following judgment:- 1) CCE vs. Ultratech Cement Ltd. 2010 (20) STR 577 (Bom) 2) Willis Processing Services ....