TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 387
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....the tailing dam constructed few kilometers away from the mine for collecting industrial waste/residue for Environmental related issues. Thus, for this purpose, the appellant has availed services for raising the height of tailing dam and the service tax paid thereon was availed as Cenvat credit by the appellant under Rule 2(1) of the Cenvat Credit Rules, 2004. 1. Further, the appellant has also created a facility for drawing recycled water (by process of sedimentation/condensation) from the tailing dam to the captive mine, through pipelines, where underground mined ores, containing mud/impurities are washed for concentrating the ore. Thus, for washing mined ores, pipelines so laid requires periodical maintenance work, therefore appellant availed maintenance service for the pipeline works and the service tax paid thereon was availed as credit by the appellant under Rule 2 (l) of the Credit Rules. In Appeal No.E/50636/2014 2. Appellant is engaged in the manufacture of Zinc, Lead and Sulphuric Acid, etc. Appellant have an ore concentration facility at Dariba, where mined ores, containing mud/impurities, are brought for washing and concentrating the said ore for sending the same to ....
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....nufacturing activities of the final product i.e. lead, zinc or sulphuric acid either directly or indirectly. 6. Being aggrieved with the aforesaid OIOs, the Appellant has filed the present appeals on the following grounds: 6.1 Cenvat credit has been correctly availed by the Appellant on services, in relation to tailing dams/Secured Land Fills and Jerofix Ponds, used for disposal of hazardous industrial wastes, as they are essentially/integrally connected with the manufacturing process, thus qualifying as an eligible input service defined under Rule 2(1) of the Credit Rules. 6.2 In terms of Rule 2 (l) of the Credit Rules, - input service" means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place removal (emphasis supplied) and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storag....
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....(20) STR 577 (Bom) [pg. 62-71 of case compilation], held that "...... the definition of "input service" covers services used directly or indirectly in or in relation to the manufacture of final products, whereas the inclusive part of the definition of "input service" covers various services used in relation to the business of manufacturing the final products. In other words, the definition of "input service" is very wide and covers not only services, which are directly or indirectly used in or in relation to the manufacture of final products but also includes various services used in relation to the business of manufacture of final products, be it prior to the manufacture of final products or after the manufacture of final products. To put it differently, the definition of input services is not restricted to services used in or in relation to manufacture of final products, but extends to all services used in relation to the business of manufacturing the final products." 6.5 It is an undisputed fact that the services in question availed by the appellant in relation to the raising height of tailing dam/construction of Secured Land Fills and Jerofix Storage Ponds, are used essentiall....
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....e entitled to the said exemption." 6.8 It is submitted that the Cenvat credit is admissible to the appellant in relation to the subject services, as they are integrally connected with the manufacturing activity of the appellant and hence the impugned order is not sustainable and is liable to be set aside. 6.9 Similarly service tax credit taken on maintenance of pipelines of tailing dam for transporting water to the captive mines qualifies as an eligible input service under Rule 2(1) of the Credit Rules. 6.10. Extended period not invokable; Penalty not imposable and interest not recoverable :- Without prejudice to the above grounds, it is also submitted that the appellant had no intention to act dishonestly and had acted in accordance with the legislative provisions in as much as every relevant fact is on record and no credit has been availed without the knowledge of the department. Therefore, the demand raised, (in E/50958/2014) by the SCN dated 01.06.2012 for period August 07 to October 2011, is time-barred upto April, 2011. And with respect to demand raised, (in E/50636/2014) by SCN dated 26.12.2012 for the period August 2009 to February 2011, the entire demand is barred by l....