TaxTMI 
TaxTMI 
2016 (7) TMI 1066
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....bility for service tax credit of Rs. 4,90,316/- paid towards availing repair and maintenance service and erection and commissioning services with reference to water pipe line laid by the appellant to obtain water from Sharda OCM Plant situated away from the manufacturing facility of the appellant. The credits were denied on the ground that the services availed have no nexus to the manufacturing activity of the appellant and these are relating to pipe lines situated outside the factory premises of the appellant. 2. Ld. Counsel for the appellant submitted that water is one of the main input item used in the manufacture of paper. The appellants laid pipe line to obtain water from Sharda OCM Plant, who had water storage facil....
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....ter is being transported from outside by a pipe line laid and maintained by the appellant. "Input Services" to be eligible for credit is not linked to any location for receipt of such services. The Hon'ble Bombay High Court in case of Deepak Fertilizers & Petrochemicals Corpn. Ltd. - 2013 (32) STR 532 (Bombay) examined the scope of "Inputs Services" and held as under:- "5. Now at the outset it must be noted that Rule 3(1) allows a manufacturer of final products to take credit inter alia of Service Tax which is paid on (i) any input or capital goods received in the factory of manufacturer of the final product; and (ii) any input service received by the manufacturer of the final product. The subordinate legislation i....
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....ement 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 Cenvat credit for input services used in respect of inputs only to these two categories viz. for the procurement of inputs and for the inward transportation of inputs. This interpretation which has been placed by the Tribunal is ex facie contrary to the provisions contained in Rule 2(l). The first part of Rule 2(l) inter alia covers any services used by the manufacturer directly or indirectly, in or in relation to the manufacture of final products. The inclusive part of the definition enumerates certain specified categories of services. However, it would be far....