TaxTMI 
TaxTMI 
2023 (1) TMI 1135
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....e appellant had availed credit of tax on 'construction service', 'security service', 'maintenance and repair service', 'works contract service' and 'manpower recruitment and supply service' procured by them and it was contended by central excise authorities that such availment was not permissible under rule 3 of CENVAT Credit Rules, 2004 owing to non-conformity with the definition of 'input service' in rule 2(l) of CENVAT Credit Rules, 2004. 2. Both sides, claiming their respective standpoints to be sanctified by judicial decisions, have chosen to pursue the applicability of the decisions to its logical culmination and, in the process, have made but passing reference to the impugned definition on the assumption of applicability to both Revenue and assessee which, to us, is beyond the pale of probable and possible. Coincidentally, the observation of the original authority that '24. Now, I proceed to examine the dispute regarding credit on township related expenses. I find that the issue under "dispute is pertaining to construction of residential quarters and other civil structure located at the factory township and its maintenance & repair. Since these services are provided at th....
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....h December 2011 of passed by Commissioner of Central Excise & Service Tax, Large Tax Payer Unit, Mumbai], sufficed for a finding in their favour. 4. Per contra, it is the contention of Learned Authorised Representative that the chronologically proximate decision of the Hon'ble High Court of Bombay in Commissioner of Central Excise v. Manikgarh Cement [2010-TIOL-720-HC-MUM-ST], referred to in the order of the lower authorities, is more relevant to the circumstances of the dispute than the one in re Coca Cola India Pvt Ltd. It was canvassed by him that the thrust of several decisions was that the availment of credit must rest upon the test of nexus between '(l) "input service" means any service,- (i) used by a provider of taxable service for providing an output 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 upto 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, mar....
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....ax paid on such services under Rule 2(l) of the CENVAT Credit Rules, 2004.' It would, therefore, appear that the dispute therein turned upon the nexus of impugned activity with 'relating to business' qualifying the enumeration within the inclusive leg in rule 2(l) of CENVAT Credit Rules, 2004. 7. On the other hand, the Hon'ble High Court of Bombay in re Coca Cola India Pvt Ltd was confronted with the claim of eligibility to avail credit of tax paid on 'advertisement services' procured by the appellant; therein, it was alleged that the impugned service was not required for promotion of goods until after it was bottled for sale in subsequent manufacturing facility of bottlers. Admittedly, the service had been procured for promotion of the product bearing the brand name of the appellant and, hence, held as entitled even though the goods manufactured by the appellant were being cleared only to bottlers franchised by them. It was in that context that the 'nexus imperative' argued on behalf of Revenue did not find favour with the Hon'ble High Court of Bombay and, in allowing availment as the manufacture of assessee transferred entirely to their bottlers whose limited processing of comb....
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....ns specified by the concentrate supplier/brand holder etc. A license to use the brand name would also be given to the bottler. Thus, the business arrangement is not confined to mere manufacture and sale of the concentrate to the bottler but is an integrated/integral arrangement related to the purchase of the concentrate, use of the brand name of the bottler, adhering to the terms and conditions of the franchisee agreement. Thus, the business of manufacture of concentrate does not end with the manufacture and sale of concentrate, but continues and extends much beyond that.' and after noting the judgment of the Hon'ble Supreme Court in Union of India v. Bombay Tyre International [1983 (14) ELT 1896 (SC)] for the purpose. It, therefore, emerges that the 'nexus imperative', including with the principal and secondary conditionalities posited by the lower authorities, espoused in both judgments arose from the claim of coverage within the inclusive leg of the definition in the context of the objective in deployment of the impugned services by a manufacturing entity. 8. The decision of the Larger Bench of the Tribunal, relied upon by the appellant herein, was the outcome of a refer....