TaxTMI 
TaxTMI 
2020 (10) TMI 319
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....ner (Appeals), Kolkata, for the period in dispute i.e from January 2005 to December 2007. 2. The Tribunal vide Final Order dated 01.0.2012 allowed the appeal by relying upon the decision of the Hon'ble Karnataka High Court in the case of CCE, LTU vs. ABB Ltd 2011 (23) STR 97 (Kar.) wherein it has been held that assessee is eligible to avail credit on outward transportation services in terms of the definition of 'input service' as appearing in the CENVAT Credit Rules prior to amendment made on 01.04.2008. 3. Against the aforesaid order of the Tribunal, the Revenue preferred an appeal before the Hon'ble Calcutta High Court. Vide Order dated 27.11.2013 , the Hon'ble Calcutta High Court while disagreeing with the Karnataka High Court's de....
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.... insofar as judgment of the CESTAT pertaining to second part is concerned. 5. Coming back to the first part of the definition as to what input service means, the Full Bench of the CESTAT held that all input services which are used by the manufacturer, whether directly or indirectly, in or in relation to manufacture of final products and clearance of final products from the place of removal are concerned, they are treated as input services and Cenvat credit in respect of expenditure incurred in relation to such services would be admissible. The expression with which the CESTAT was concerned, and which was the subject matter of discussion, was as to what would be the meaning of "from the place of removal". Obviously, any input servic....
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....which the word includes applies has to be construed liberally as it is extensive. The exhaustive portion of the definition of 'input service' deals with service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. It also includes clearance of final products from the place of removal. Therefore, services received or rendered by the manufacturer from the place of removal till it reaches its destination falls within the definition of input service. What are the services that normally a manufacturer would render to a customer from the place of removal? They may be packing, loading, unloading, transportation, delivery, etc. Though the word transportation is not specifically used in th....
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....ital goods (b) outward transportation upto the place of removal. While dealing with inward transportation, they have specifically used the words 'inputs' or 'capital goods'. But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the customer. Therefore, 'input service' includes not only the inward transportation of inputs or capital goods but also includes outward transportation of the final product upto the place of removal. Therefore, in the later portio....