2019 (2) TMI 569

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.... are that the appellants are engaged in the manufacture of tubes, pipes and hollow profiles of iron under Chapter 73 of the CETA, 1985. During the audit of the said unit by the Departmental officers, it was noticed that the appellant availed CENVAT credit on input services like erection, commissioning and installation services, consultancy, site supervision in connection with setting up of 33 KV line services inasmuch as the said services do not fall within the ambit of Rule 2(l) of CENVAT Credit Rules, 2004 since the word 'setting up' was deleted from the inclusive part of input service definition w.e.f. 01/04/2011. On this allegation, a show-cause notice dt. 05/08/2016 was issued for recovery of CENVAT credit wrongly availed of Rs. 3,38,5....

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....ubmitted that the setting up of 33KV Terminal Bay for ensuring continuous power supply to the manufacturing unit from the State Electricity Board fall in the definition of input service because the Board has sanctioned continuous power supply from the grid which is about 3 KM away from the factory and the appellant is required to make arrangement for setting up of poles along with path for bearing the electric cables supplying the power from the grid to the factory and this works contract was given to a contractor who executed the said work and the appellant has availed the credit of service tax paid in respect of the said works contract. This continuous power supply to the manufacturing factory is in relation to the manufacturing activity ....

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....of the Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement Ltd. [2010(260) ELT 369 (Bom.)] wherein the definition of input service was widely interpreted and it was held that all the input services which are used directly or indirectly, in or in relation to the manufacture of final products would be eligible for claiming CENVAT credit. 5. On the other hand, the learned AR for the Department defended the impugned order. 6. After considering the submissions of both the sides and perusal of the material on record, I find that all the input services viz., setting upf of 33 KV Terminal Bay, software services, security services, freight inward service and insurance service relate to the factory which is used for manufacture of fin....