TaxTMI 
TaxTMI 
2017 (10) TMI 186
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.... 2. These appeals raise the issue of admissibility of CENVAT Credit of the Service Tax paid on 'Courier Service' pertaining to the period prior to 01.4.2011 and thereafter and also on CHA service and C&F service. The Ld. Advocate Shri S. R. Dixit for the appellants submitted that all these appellants are manufacturer of excisable goods and the 'Courier Service' has been used by them in or in relation to sending/receiving of the 'samples', documents, and finished goods'. It is his contention that for the period prior to 01.4.2011 credit of service tax paid on 'Courier Services' in dispatching finished goods has been held to be admissible by the Hon'ble Gujarat High Court in the case of Cadila Healthcare Ltd - 2013(30) STR. 3 (Guj.). In hold....
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....further submitted that even though the expression of 'activities relating to business' has been deleted in the amended Rule, however, the other activities viz., Advertisement, Sales Promotion, Market Research, Accounting, Audit, Financing, Recruitment, Coaching and Training, Computer Net-working, Credit Rating, Share Registry, Security, Business Exhibition, Legal Service etc., continued to remain in the domain of 'Input Services'. These services are definitely used outside the factory premises in furtherance of the activity of Sale/Marketing, Finance etc. and directly not connected with the manufacture of goods. Also, the courier service does not fall under the negative list of the services excluded from the scope of the amended definition ....
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....es and perused the records. 6. The core issue for determination is: whether the appellants are eligible to CENVAT credit of the Service Tax paid on 'Courier Services'. The present appellants are manufacturer of excisable goods and utilized the 'Courier Services' in sending the Samples, Documents and Finished Goods to their customers. Revenue has not seriously disputed admissibility of Cenvat Credit on the 'Courier Services' for the period prior to 01.4.2011. It is their contention that after amendment to the definition of 'Input Service' prescribed at Rule 2(l) of CCR, 2004 with effect from 01.4.2011, that is, consequent to the deletion of the expression 'activities relating to business, such as' the 'Courier Services' would fall outside t....
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....used inside the factory premises, but continued to remain in the said definition of input service. Needless to mention that these services are even though not directly linked to the manufacturing activity in the factory premises of the assessee but connected or related to the business of manufacturing activity which also involve marketing/sale of the manufactured goods. Therefore, the contention of the Revenue that unless the activity has a direct nexus with the manufacturing of goods in the factory premises, post deletion of the expression activities relating to business, could not entitle the assessee to avail credit on the Service Tax paid on services, including 'Courier Services' which are not directly connected with the manufacturing a....