2017 (9) TMI 271

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....impurities, are brought for washing and concentrating the said ore for sending the same to their captive smelters for smelting. The ore concentrates are liable to duty on which appropriate excise duty has been discharged by the appellant. 2. Since the said ores are mined from underground mines which contain mud and other impurities, these need to be washed for removal of impurities, before further processing, for which a lot of water is required. For this purpose, Appellant is drawing water from various dams to their factory, through the pipelines. In order to get additional supply of water from Ghosunda Dam, catchment capacity is required to be increased and for carrying out this work, they have hired Consultancy & Liasoing services fro....

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....of pipelines for water supply to the mines has been allowed by the Tribunal in the appellant's own case in several decisions. He cited the following orders which are in their favour. i. Hindustan Zinc Ltd. v. CCE, Udaipur, Final Order No.53146/2017 SM dated 28.04.2017 ii. Hindustan Zinc Ltd. v. CCE, Udaipur, Final Order No.53136/2017 dated 27.04.2017 iii. Hindustan Zinc Ltd. v. CCE, Udaipur, Final Order No.51956/2017 dated 22.02.2017 iv. Hindustan Zinc Ltd. v. CCE, Jaipur-II Final Order No.53619-53620/2017 dated 29.05.2017 7. With reference to the credit availed on consultancy service for raising the height of embankment of Ghosunda Dam, he submitted that the expression 'in or in relation to the manufacture of final product' ....

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.... in relation to the business of manufacture of final products. The dispute in the present case is with reference to the credit availed on service tax paid in consultancy service for raising the height of the dam/embankment. Such dam is used to store water which is subsequently transferred through pipelines for use in the captive mines of the appellant. It is not disputed that supply of water is essential for the mining activity and such water is to be drawn from the dam. Hence, it becomes an essential activity to increase its height. The definition of input service for a manufacturer covers services used directly or indirectly in relation to the manufacture final products. The definition also includes various services used in relation, to a....