TaxTMI 
TaxTMI 
2023 (4) TMI 713
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....envat credit of the service tax paid in respect of service of transportation of natural gas received from GSPL. The respondents are engaged in purchasing the gas and receiving the same through pipeline. Thereafter they supply by way of sale to their customers. He pointed out that this activity of the sale of gas to the customers is not an activity liable to service tax. He argued that it is purely a trading activity and it is not covered within the definition of output service as defined under Rule 2 (b) of cenvat credit rules, 2004. He argued that since the trading activity is not covered within the definition of output service therefore the service of gas through pipeline used for such activity is not covered within the definition of input service. He pointed out that the respondents are registered for the purpose of service tax in respect of the activities like installation of new gas pipeline, Gas meters at the customer's end. The respondents also registered for repair and maintenance of pipelines network, Annual maintenance of gas pipeline network , sales promotion to GSPC or sale of CNG at the CNG pumps. 2.1 He argued that for the said output services, the services of supply....
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.... Convergys India Pvt. Ltd - 2009 (16) STR 198 (Tri.- Del). He further relied on the decision of the Tribunal in the case of M/s. Valco Industries Limited - 2012 (28) STR 457 (Tri.- Del) and in the case of M/s. Navratna S.G. Highway Prop. Pvt. Ltd. - 2012 (28) STR 166 (Tri. Ahmd) to hold that the Circular No. 98/1/2008 - ST relied by the Revenue held to be the correct interpretation in the above decisions. 3.4 He further argued that the extended period of limitation could not have been invoked as the department was aware of availment of cenvat credit on transportation charges on the strength of bills received from GSPL. He further argued that the demand of Rs. 25,10,648/- being the amount of cenvat credit utilized for payment the service tax on output services was rightly used as the credit on transportation service was rightly availed by the respondents. All these figures have been disclosed in the ST-3 returns. He further argued that since the entire cenvat credit has been demanded from the respondents, a second demand of the amount utilized resulted in duplication of demand and therefore the same cannot be sustained. 4. We have considered the rival submissions. It is seen that ....
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....ided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly;" 4.4 It is observed that the impugned order relies on the decision of the Tribunal in the case of Ultratech Cement Ltd - 2010 (20) STR 577 (Bom.) wherein para 29 following has been held :- "29. The expression "activities in relation to business" in the definition of "input service" postulates activities which are integrally connected with the business of the assessee. If the activity is not integrally connected with the business of the manufacture of final product, the service would not qualify to be a input service under Rule 2(l) of the 2004 Rules." 4.5 The impugned order holds that the activity of transportation of gas is integrally connected with the business of the respondent and therefore credit could not have been denied under the category of activity relating to the business. Impugned order also holds that the cost of transportation of natural gas from the premises of GSPC to the pumping station of the respondent was recovered from their customers....
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....ut service" is very wide and covers not only services, which are directly or indirectly used in or in relation to the manufacture of final products but also includes various services used in relation to the business of manufacture of final products, be it prior to the manufacture of final products or after the manufacture of final products. To put it differently, the definition of input service is not restricted to services used in or in relation to manufacture of final products, but extends to all services used in relation to the business of manufacturing the final product. 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....