2016 (7) TMI 1064

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....mined ores are brought for washing and concentration before sending to their smelters. The ore concentrate are liable for duty, which the appellants are discharging. The dispute involved in these two appeals are relating to availability of Cenvat credit of service tax paid on :      (a) technical inspection and certification service w.r.t. the pipelines for transport of water from dams to the Dariba unit and (b) service tax paid on installation service for laying of the said pipelines for transport of water to Dariba unit. 2. The Revenue disallowed the credits on the ground that these services were not entitled for credit as they are not integrally connected either directly or indirectly with the man....

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.... is the eligibility of appellant for service tax credit paid on services received for laying, inspecting and certifying the pipelines used for transportation of water to the manufacturing unit at Dariba. The admitted facts are that water is essential in the manufacturing process, the pipelines are exclusively used for transport of water for the said purpose. The service tax paid is on services received w.r.t. pipelines. The reasoning given by the lower Authorities regarding these services being not connected with manufacture is not sustainable in view of the facts narrated above. The scope of input services as given under Rule 2 (l) of Cenvat Credit Rules, 2004 is not restricted to the location of the factory premises alone. The Hon'ble Bom....

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.... 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 advisedly used a broad and comprehensive expression while defining the expression "input service". Rule 2(l) initially provides that input service means any services of the description falling in sub-clauses (i) and (ii). Rule 2(l) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tribunal, proceeded to interpret the inclusive part of the definition and held that the Legislature restricted the benefit of....