TaxTMI 
TaxTMI 
2015 (11) TMI 1616
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....ts smelter Division, during the relevant period, as a part of the expansion project, the appellant had arranged private Railway siding between Fatehnagar and Rajpura-Dariba. For the purpose of establishment of Railways siding, the appellants had engaged a consultant for undertaking survey and connected jobs and to submit its report to the appellants. For the purpose of acquisition of the land required for laying the railway siding, the appellant also engaged a Consultancy firm to rehabilitate the land owners with suitable compensation. For providing the above taxable services, the consultant paid the service tax and issued the invoice to the appellants. Based on those invoices, the appellants availed cenvat credit, which was denied by the J....
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.... both sides and perused the records. 5. In the inclusive part of definition of input service, it has been provided that "activities relating to business" should also be qualified as a service for the purpose of availment of cenvat credit. In interpreting the expression "activities in relation to business", the Hon'ble Bombay High Court in the case of Ultratech Cement (Supra) have held that definition of input service postulate activities which are integrally connected with the business of the assessee; that if the activity is not integrally connected with the business of the manufacture of final products, the service should not qualify to be an input service under Rule 2 (l) of the Cenvat Credit Rules, 2004. In the present case, it is an a....
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....e case of Maruti Suzuki Ltd. (supra) in the context of the definition of 'input' in Rule 2(k) of 2004 Rules would equally apply while interpreting the expression "activities relating to business" in Rule 2(l) of 2004 Rules. No doubt that the inclusive part of the definition of "input" is restricted to the inputs used in or in relation to the manufacture of final products, whereas the inclusive part of the definition of input service extends to services used prior to/during the course of/after the manufacture of the final products. The fact that the definition of "input service" is wider than the definition of "input" would make no difference in applying the ratio laid down in the case of Maruti Suzuki Ltd. (supra) while interpreting the sco....