TaxTMI 
TaxTMI 
2016 (12) TMI 381
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.... period from April, 2012 to March, 2013 proposing to deny Cenvat credit availed by them on manpower supply services received for maintenance of railway track, work and Cenvat credit availed on service tax paid on reimbursement of statutory contribution to PF and ESI for manpwoer supply service. 2. On behalf of the appellants, the Ld. Counsel Shri Karan Talwar advanced arguments referring to the definition of 'input services". He submitted that the definition of input services is of wide amplitude and has been interpreted by courts to include those services which are integrally connected with the business of manufacturing and the cost of which forms a part of the cost of final product. The definition of input service specifically provides....
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....llowed credit on the fixed component payable to the contractor and denied credit on reimbursable component holding that such payment is for welfare of employee only and do not have nexus with manufacturing activity. The man power services were used for loading of cement, which is completely in or in relation to the activity of manufacture of appellant. That therefore when the department has allowed credit on part of the consideration paid for manpower services, the denial of credit on balance portion of the consideration paid for the said services is contradictory and incorrect. The Ld. Counsel adverted to Circular No.B-1/6/2005, dated 27-07-2005 and submitted that in the said circular it was clarified by Board that service tax is payable o....
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.... nexus with the manufacturing activity is against all cannons of reasoning. Further, the first part of definition of input service states,- input service means "any service - used by a manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products upto the place of removal" . Therefore, any services used directly or indirectly in or in relation to the manufacture of final products would fall within the definition of input services. Since transportation of inputs into the factory as well as transportation of finished goods is an indispensable activity in the process of manufacture it can be concluded without doubt that manpower services used for maintenance of railway track....
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....arge number of services used by the manufacturer. Such service may have been used either directly or even indirectly. To qualify for input service, such service should have been used for the manufacture of final products or in relation to manufacture of final product or even in clearance of the of the final product form the place of removal. The expression "in relation to manufacture" is wider than - for the purpose of manufacture". The words - and clearance of the final products from the place of removal" are also significant. Means part of the definition has not limited the services only upto the place of removal, but covers services used by the manufacturer for the clearance of the final products even from the place of removal. It can th....