2016 (8) TMI 846

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....tion work in Mines. 1,11,234/- 2. Mines Garage Attendants works 4, 142/- 3. Formation of New Gravel road, 69,256/- 4. Dumper related services such as Labor charges towards overhaul of dumper & heavy Earth Movers, Retreading of dumper Tyre 6,978/- 5. Conveyor Extension shed extending work at Packing Plant and wagon loading 12,409/- 6. Borewell works 589/- 7. Concrete pavement at Bulk Loading Area 2,234/- 8. Lab Modification work 4,070/-   9. Providing Drain in railway siding 19,391/- 10 Electrical Maintenance charges at other places 5,603/-   Total 2,35,906/- On adjudication, vide order dated 07-10-2013, the lower authority confirmed the proposals in the show cause notice, ordered demand of service tax amount of Rs. 2,35,906/- with interest thereon and also imposed penalties. 3.  Appellants were also issued with a show cause notice dated 17-10-2013 (for the period October 2012 to March 2013) inter alia proposing to demand an amount of Rs. 83,823/-, on the allegation that the appellants had wrongly availed/utilized the Cenvat Credit of Service Tax paid in respect of th....

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.... service has two clauses - a main clause and an inclusive clause. The inclusive clause expands the scope of the definition. In this regard they rely on the following decisions: • CCE Nasik vs Cable Corporation of India Ltd 2008(12) STR 598 (Tri. Mumbai). "from the above definition, it is very clear that the input services besides being used in or in relation to the manufacture of final products and clearances of final products from the place of removal includes a plethora of other services such as service used in relation to settingup, modernization, renovation or repairs of factory, premises of provider of input service or an office relating to such factory or premises, advertisement or sales, activities of business, accounting, auditing, financing, recruitment, quality control, training and coaching etc. and therefore its scope is much larger than being used directly or indirectly in relation to manufacture.  " 7.2 Reliance is also placed on the following decisions: • M/s Keltch Energies Ltd Vs CCE, Mangalore Bang 2008 (10) STR (Tri-Bang) • Metro Shoes Pvt. Ltd vs CCE, Mumbai 208 (10) STR 382(Tri-Mumbai) • Paras....

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....well works, concrete pavement works and work of providing drain in railway siding relates to construction or execution of works contract of a building or civil structure or part thereof and hence will be excluded from the ambit of input service, as defined in 2( l) of Cenvat Credit Rules, 2004. 9. Heard both sides and have gone through the facts on record of both the appeals. For the sake of better understanding and analysis of the issues at hand, it would be appropriate to reproduce Rule 2(I) of Cenvat Credit Rules, 2004: 'input service' means any service: (i) used by a provider of output service for providing an output service; or (ii)  used by a 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, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of the provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitme....

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....ppeal No.20555/2015, I find that none of the input services on which credit has been availed by the appellant are excluded or barred by the provisions of the said Rule 2(l) as amended w -f. 01-03-2011. I also find that the said input services are very much in the nature of services directly or indirectly required in relation to the manufacturing /production activities carried out by the appellant at the impugned mine. In the circumstances, I hold that the disputed credits amounting to the Rs. 83,823/- availed by the appellants on the aforesaid input services are eligible and correct in law. In consequence, the portion of impugned Order-in-Appeal No.01 and 02/2014 upholding the order dated 26-03-2014 of adjudicating authority, who inter-alia disallowed the aforesaid amount, will required to be set aside, which I hereby do. Appeal No.20555/2015 is thus allowed in toto. 12.1 In respect of the second Appeal No.20553/2015, for the very same reasons discussed herein above, I find that the appellants are eligible to avail the following disputed credits: S.No. Description of input service Cenvat Credit availed (in Rs) 1 . Maintenance & Cleaning work at m....