TaxTMI 
TaxTMI 
2017 (5) TMI 939
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....visory Services Pvt. Ltd. (PLA) under the category of 'Banking & Other Financial Services' on account of advisory and placement charges relating to private placement of equity shares during January 2007. The said PLA raised bill on the appellant for the services rendered and also charged service tax of Rs. 47,29,436/- of which the appellant took CENVAT credit. Revenue is of the opinion that such CENVAT credit is not eligible as the services rendered is not fall under the category of input services and they were not in relation to the manufacturing of the final products and were rendered to appellant's head office as also the same has to be distributed to various manufacturing units. 4. Learned Counsel brings to our notice that similar is....
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..... After considering the submissions made by both sides, I find that the issue is in a narrow compass. 6.1 It is undisputed that M/s PL Advisory Service Pvt. Ltd. have placed preferential equity shares of the appellant for raising of funds/finance for the appellant. It is noticed from the records and more specifically from the order-in-appeal, that appellant had been taking this plea before the adjudicating authority as well as before the first appellate authority that the amounts so raised were used for the manufacturing activity as infusement of capital. In my considered view, the adjudicating authority as well as the first appellate authority have misdirected their entire findings in denying CENVAT credit of the service tax paid under ....
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....bsence of any doubt raised as to the eligibility to avail the Cenvat credit at their head office, the recipient unit, cannot be asked to explain the nexus of such credit to the output service provided by them. In our considered view, and is undisputed that the amounts so raised by the appellant by disinvestment, investment, etc., were recorded in their financial account towards the expansion of the business activity undertaken by the appellant. 5.6 In our considered opinion, the expansion of the business activity is directly connected with the activity of the service provided by the appellant to their service recipient which is nothing but the correlation to the business undertaken by the appellant. We find that our above view that the s....
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....not be entitled to avail of Cenvat credit in respect of services utilized in relation to ammonia storage tanks on the ground that they were situated outside the factory of production. The definition of the expression 'input service' covers any services used by the manufacturer, whether directly or 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(1) initially provides that input service means any services of the description falling in sub-clauses (i) and (ii). Rule 2(1) then provides an inclus....
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....f the final product, insofar as any input service is concerned, the only stipulation is that it should be received by the manufacturer of the final product. This must be read with the broad and comprehensive meaning of the expression 'input service' in Rule 2(l). The input services in the present case were used by the appellant whether directly or indirectly, in or in relation to the manufacture of final products. The appellant, it is undisputed, manufactures dutiable final products and the storage and use of ammonia is an intrinsic part of that process". In the case of Ultratech Cement : "27. The definition of "input service" as per Rule 2(1) of 2004 Rules (insofar as it relates to the manufacture of final product is concerned), cons....
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....ule 2(1) of the 2004 Rules. 30 to 33 ... ... 34. Therefore, the definition of input service read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have direct nexus or which are integrally connected with the business of manufacturing the final product." It can be seen that in the above case of manufacturers the Hon'ble High Court has considered the definition of 'input services', a ratio which will be applicable in the case of output service providers also, as it cannot be disputed that the output service providers also need input services for financing of the business activ....