AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 1196
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....l these appeals are taken up together for hearing and a common order is being passed. The details of appeal are as under:- Sl. No. Appeal by JBL Appeal by Department 1 ST/782/2010 No appeal filed 2 ST/783/2010 -do- 3. ST/784/2010 -do- 4. ST/1392/2012 ST/1356/2012 5. ST/1390/2012 ST/1406/2012 6. ST/1419/2012 ST/1357/2012 7. ST/1388/2012 ST/1359/2012 8. ST/1393/2012 ST/1358/2012 9. ST/1394/2012 ST/1403/2012 10. (Already decided) ST/1402/2012 11. -do- ST/1404/2012 12. No appeal filed ST/1405/2012 2. The brief facts of the case are that JBL is a 100% EOU under the jurisdiction of Cochin Special Economic Zone (CSEZ) and is also registered with the Department of Scientific and Industrial Research (DSIR). It renders early drug discovery services, for which it is registered with the Service Tax Department under taxable category of Scientific and Technical Consultancy Service, which is mostly exported by M/s JBL to its overseas clients. To provide the said output service, JBL receives various input services and avails CENVAT credit of the service tax paid on su....
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....t Credit Rules, 2004 is not legal and proper. 6. Shri Devendra Sharma, the ld. Advocate appearing for the appellant submitted that the disputed services are confirming to the definition of input service contained in Rule 2(l) of the Cenvat Credit Rules, 2004. He further submitted that since the disputed services have been used for the business related activities of JBL, service tax paid on those services qualify for availment of Cenvat credit. To support his submissions that Cenvat credit cannot be denied on the aforementioned disputed services, the ld. Advocate has placed reliance on the Final Order No. 26721-26723/2013 dated 09.01.2013 passed by this Tribunal in their own case. Further, the ld. Advocate also relied on the decisions of this Tribunal in the case of Dell International Services India Pvt. Ltd. Vs. CCE, Bangalore [2010(17) STR 540 (Tri. Bang.)], Convergys India Services Pvt. Ltd. Vs. CST, New Delhi [2012(25) STR 251 (Tri. Del.)] and in the case of CCE, Hyderabad Vs. Deloitte Tax Services India Pvt. Ltd. [2008(11) STR 266 (Tri.)], to justify his stand that denial of Cenvat credit on the disputed services is not justified, and thus, JBL is entitled for refund claim....
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....e and meaning of the above expression contained in the Income Tax statute, the Hon'ble Supreme Court in the case of CIT - Vs. - Malayalam Plantation Ltd., 53 ITR 140 (SC) and CIT - Vs. - Nainital Bank, 62 ITR 638 (SC) have discussed the basic principles of 'commercial expediency'. The Hon'ble Apex Court have laid down the law that if an expenditure is commercially required to be incurred with a view to benefit the trade and to facilitate the carrying on the business, such expenditure will be allowed as deduction under Section 37 of the Income Tax Act, 1961. 11. The business activities in the case of a service provider are not only confined to mere proving the service directly, but also include other activities, which he may be required for accomplishing the purpose of business. For smooth functioning of the business of providing the service and other like activities, the service provider may use other services, which are ancillary and incidental for accomplishing the main purpose. In such an eventuality, it cannot be said that the function of those ancillary services are not connected to the business purpose of the assessee. On perusal of the definition of 'i....
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....rtaining to. The expression pertaining to is an expression of expansion and not of contraction. The expression Relating to thus widens the scope of the definition. 27. Similarly, the use of the word activities in the phrase activities relating to business further signifies the wide import of the phrase activities relating to business". The Rule making authority has not employed any qualifying words before the word activities, like main activities or essential activities etc. Therefore, it must follow that all and any activity relating to business falls within the definition of input service provided there is a relation between the manufacturer of concentrate and the activity. Therefore, the phrase activities relating to business are words of wide import. 12. Further, on perusal of the statute book, it reveal that 'input service' is not restricted to services used in or in relation to providing the output service, but the same extends to all the services used by the service provider, in relation to business of providing the output service, involving numerous activities. It is not practically possible to specify each and every activity of business in t....
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....4 Rules is restricted to the categories specified therein, runs counter to the C.B.E.C. Circular No. 97, dated 23rd August, 2007. In that Circular the C.B.E.C. (vide para 8.3) has held that the credit of service tax paid in respect of mobile phone service is admissible provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods. Mobile phone service is neither used in the manufacture of final product nor it is specifically included in the definition of input service. Even then, the C.B.E.C. has construed the definition of input service widely so as to cover not only the services specifically enumerated in the definition of "input service" but also cover all services which are used in relation to the business of manufacturing the final products. Therefore, the argument of the revenue which runs counter to stand taken by the C.B.E.C. cannot be accepted." 13. The ratio laid down by the Hon'ble Bombay High Court as referred above in context with the definition of 'input service' is that the definition is exhaustive and is not confined to the services itemized therein after the phrase such as; rather the said....