TaxTMI 
TaxTMI 
2019 (5) TMI 140
X X X X Extracts X X X X
X X X X Extracts X X X X
....T Credit of Rs. 97,64,676/- on the service tax paid for such services. It was then noticed that a portion of the factory premises, to an extent of 7409 sq. metres, was rented out by the respondent to M/s. Balda Motherson Solutions India Ltd. on the basis of a joint venture agreement dated 10.03.2006 and a lease agreement dated 12.12.2006. 2.1 The Department was of the view that the respondent is not eligible for the credit to the tune of Rs. 30,32,309/- being the credit attributable to the part of the factory that has been leased out to another person and not used for the manufacture of final products. 2.2 A Show Cause Notice was issued proposing to demand the wrongly availed credit along with interest and also for imposing penalties. After due process of law, the Original Authority confirmed the demand of Rs. 30,32,309/- along with interest and imposed equal penalty under Section 11AC of the Central Excise Act, 1944. In appeal, the Commissioner (Appeals) vide impugned order dated 20.12.2012 set aside the same. Hence, the Department is now in appeal before the Tribunal. 3.1 Ld. AR Ms. T. Usha Devi appeared and argued the matter on behalf of the Department. She submitted th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the respondent. 4.2 The Show Cause Notice has been issued invoking Rule 3(5) of the CENVAT Credit Rules, 2004. The said Rule is not at all applicable as the same relates to reversal of credit on inputs and capital goods when they are removed as such. In the present case, there is no allegation that inputs or capital goods were removed as such and therefore, the demand raised invoking Rule 3(5) ibid is without any legal basis. 4.3 He submitted that the respondent had availed services of setting up of factory premises. The said service is covered by the inclusive portion of the definition of 'input service' as it stood during the relevant period. The Department does not dispute that the portion leased out by the respondent is a factory premise. Thus, the CENVAT Credit has been rightly availed by the respondent. There is no requirement that the services relating to setting up of factory premises have to be used in or in relation to the manufacture of final products since such services are covered under the inclusive portion of the definition of 'input service'. He placed reliance on the decision of the Hon'ble High Court of Bombay in the case of M/s. Ultratech Cement Ltd. (supra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....service, or, (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and (clearance of final products up to the place of removal), and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit relating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal" 8.2 The said definition has been analysed in the decision rendered by the Hon'ble High Court of Bombay in the case of M/s. Ultratech Cement Ltd. (supra). The Hon'ble High Court held that the inclusive part of the definition of input services purport to cover not only services used prior to the manufacture of final products or subsequent to the manufacture of final products, but ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on "such as" in the definition of input service is exhaustive and is restricted to the services named therein, is also devoid of any merit, because, the substantive part of the definition of 'input service' as well as the inclusive part of the definition of 'input service' purport to cover not only services used prior to the manufacture of final products, subsequent to the manufacture of final products but also services relating to the business such as accounting, auditing..... etc. Thus the definition of input service seeks to cover every conceivable service used in the business of manufacturing the final products. Moreover, the categories of services enumerated after the expression 'such as' in the definition of 'input service' do not relate to any particular class or category of services, but refer to variety of services used in the business of manufacturing the final products. There is nothing in the definition of 'input service' to suggest that the Legislature intended to define that expression restrictively. Therefore, in the absence of any intention of the Legislature to restrict the definition of 'input service' to any particular class or category of services used in the bu....