2017 (8) TMI 208

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....d scrutiny of documents from 11/2004 to 11/2005 was done. It was alleged by the department that the service of outward transportation of GTA was rendered beyond the factory gate which is the place of removal in the appellant's case and therefore the said outward transportation of GTA service was not the input service for the purpose of taking Cenvat Credit. Accordingly, a show cause notice was issued for recovery of an amount of Rs. 4,70,491/- which was adjudicated and the demand of service tax was confirmed and an equal amount of penalty imposed. In appeal, the Ld. Commissioner (Appeals) upheld the order of adjudicating authority, aggrieved from which the appellant has filed this appeal. 3. Ld. Advocate for the appellants points out tha....

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....it finds a place in the inclusive definition. The question is, by a judicial interpretation, outward transportation of the final product from the place of removal till it is delivered to the customer, could be construed as falling within the definition of input service. It is a well settled rule of interpretation that, while interpreting a provision, the Court must take note of not only the express words used but also the words which are not used. If the legislature has expressly used the words in respect of the transportation in a particular manner and did not choose to include within the ambit of the word 'transportation', certain aspects, having regard to the scheme of the Section, the way it is worded, it is not open to the Court to inc....

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....it, each of those sections. When the statute provides specifically for a particular contingency, it is to be so interpreted and after so interpreting, it cannot be said in another portion where general words are used, it also includes what is specifically provided. Therefore, the finding recorded by the CESTAT that the phrase and expression 'activities relating to business' admittedly covers transportation upto the customer's place was entirely unnecessary. This interpretation of ours find support from the subsequent conduct on the part of the Central Government, which amended Rule 2(l)(ii). By Notification No.10/2008-C.E. (N.T.), dated 1-3-2008, the words 'clearance of final products upto the place of removal' were substituted in the place....

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....ortation of input of capital goods or clearance of final products upto the pi ace of removal, any service rendered and service tax paid would fall within the definition of 'input service'. Therefore, it is clear that till such amendment made effective from 1-4-2008 notwithstanding the clarification issued by the Central Government by way of their circular, transportation charges incurred by the manufacturer for 'clearance of final products from the place of removal' was included in the definition of input service. Therefore the interpretation placed by the Tribunal on the words 'activities relating to business' as including clearance of final products 'from the place of removal' which occurred already in the first part of Rule 2(l)(....