2018 (2) TMI 776

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....- under rule 15(2) of CENVAT Credit Rules, 2004 read with section 11AC of Central Excise Act, 1944.  The first appellate authority, Commissioner of Central Excise & Customs (Appeals), Goa, taking note that the denied CENVAT credit was for the period from April 2011 to March 2013, examined the relevant provisions and acknowledging that the assessee had not disputed disallowance of CENVAT credit on construction service, to limit the demand to the normal period on the remaining availments, while setting aside the penalty imposed by the original authority.  Consequently, the amount disputed in the present appeal against order-in-appeal no. KLH-EXCUS-000-APP-072-2015-16 dated 9th September 2015 is Rs. 2,68,292/-. 2. Heard Learned Cons....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f 'input service' is wider than the definition of 'input'. 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. In the facts of the present case, use of the outdoor catering services is integrally connected with the business of manufacturing cement and therefore, credit of service tax paid on outdoor catering services would be allowable. 35. The argument of the Revenue, that the expression 'such as' in the definition of input s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....resent case, the outdoor catering services being integrally connected with the business of the manufacture of cement, credit of service tax paid out on catering services has been rightly allowed by the Tribunal. 36. The argument of the Revenue that the expression 'such as' in Rule 2(l) of 2004 Rules is restricted to the categories specified therein, runs counter to the C.B.E.C. Circular No. 97, dated 23rd August, 2007. In that Circular the C.B.E.C. (vide para 8.3) has held that the credit of service tax paid in respect of mobile phone service is admissible provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods. Mobile phone service is neither used in the manufacture of fin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ufacturing the final products and that the said definition is not restricted to the services enumerated in the definition of input service itself. The Court rejected the contention of the revenue that a service to qualify as an input service must be used in or in relation to the manufacture of the final products and held that any service used in relation to the business of manufacturing the final product would be an eligible input service. 38. We concur with the above decision of this Court in the case of Coca Cola India Pvt. Ltd. (supra). However, in that case, this Court has also held that the cost of any input service that forms part of value of final products would be eligible for CENVAT credit. That observation of the Division Bench ....