TaxTMI 
TaxTMI 
2023 (7) TMI 712
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....us 'input services' for setting up of the Steel Plant , on which they have availed CENVAT Credit prior to commencement of its production. The Appellant commenced their production in the new unit on 22.08.2012 2. Based on CERA Audit conducted for the period 2011-12 to 2013-14, the Appellant was issued a Show-Cause Notice dated 08.04.2016 which was adjudicated by the Ld. Commissioner of Central Tax vide Order-in-Original No. 53/CCE/CEX/RKL/2017-18 dated 20.12.2017 ('Impugned order'), wherein the following demands were confirmed: a. Rs. 77,34,31,157/- under Section Rule 14 of CENVAT Credit Rules, 2004 read with Section 11A(4) of the Central Excise Act, 1944. b. Interest under Rule 14 of CENVAT Credit Rules, 2004 read with ....
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....inward transportation of inputs or capital goods and outward transportation upto the place of removal; 5. In their submissions the Appellant stated that the aforesaid definition has three limbs- (1) 'means clause' (2) 'includes clause' (3) 'excludes clause'. They submitted that the services in dispute availed prior to the commencement of commercial production have been inter alia used for setting up of the plant. These 'input services' are directly linked to the manufacture of the final product inasmuch without availing the aforesaid services, the Appellant could not have set up the factory for manufacture of the goods. Hence, the input services utilized for setting up of the factory are covered with the ambit of means clause i.e. servic....
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....elevant to note the preamble to the contract which reads as below:- From the above, it appears that the purpose of setting up of the CHP is to load the coal into the railway wagons in an automated manner after the coal is crushed into the desired size. It is not in dispute that the services used by the appellant is for modernization of the coal loading process. The definition of input service specifically include services received by a manufacturer for modernization of a factory. We have also perused the decision of the Tribunal in the case of Pepsico India Holdings (P) Ltd (supra) relied upon by the appellant. The Tribunal has observed that without setting up of the factory, there cannot be any manufacture and the mere fact that t....
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....sue involved in the present case is eligibility of CENVAT credit of 'input services' availed for setting up of the plant. The definition of 'input services' was amended w.e.f 1.04.2011, wherein the words 'setting up of the plant' available in the earlier definition has been specifically excluded. Hence, the department contended that the Appellant was not eligible for the input services credit used in setting up of the plant after 1.04.2011. However, the Appellant contended that the definition still covers input services used for setting up of the plant under the 'means' part of the definition. We find that the issue has been dealt by the Tribunal in the case of Pepsico India Holdings Pvt. Ltd. v. CCT, Triupati, 2021 (7) TMI 1094-CESTAT Hyde....
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....erm 'manufacture' is not defined in the Rules, the definition under the Central Excise Act, 1944 must be considered. Section 2(f) of the Central Excise Act defines 'manufacture' as follows 2(f) "manufacture" includes any process i) incidental or ancillary to the completion of a manufactured product; ii) which is specified in relation to any goods in the Section or Chapter notes of the Fourth Schedule as amounting to manufacturer; or iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment....
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.... to manufacture. Without setting up the factory, there cannot be any manufacture. Service used in setting up the factory are, therefore, unambiguously covered as 'input services' under Rule 2 (I) (ii) of the CENVAT Credit Rules 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. Once it is covered in the main part of the definition of input service, unless it is specifically excluded under the exclusion part of the definition, the appellant is entitled to CENVAT credit on the input services used. This Bench has already taken this view in Kellogs. Similar views have been taken by the other benches in the other cases mentioned ....