TaxTMI 
TaxTMI 
2023 (7) TMI 712
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.... 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 11AA of the Central Excise Act, 1944. c. Penalty of R....
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.... 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. service "used by a manufacturer whether directly or indirectly in or in relation to the man....
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....s 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 the words 'setting up a factory' has not been retained in the definition of input services post 01.04.2....
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.... 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 Hyderabad, wherein it has been observed as under: 16. We find that the definition of 'input service prior to 1.04.2011 had two parts- a main part of the definition and an inclusive part o....
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....al 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 on the goods to render the product marketable to the consumer; the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in th....