2009 (6) TMI 63

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....while the learned counsel for the respondent has claimed support from Lucknow Development Authority v. M.K. Gupta [1994] 1 SCC 243 as also from Bombay Woollen Mills (P.) Ltd. v. Union of India 1988 (36) ELT 35 (Bom.). The counsel has also referred to the Draft Credit Rules issued by the Ministry of Finance on 12-8-2004. 2. In adjudication of two show-cause notices, the original authority had disallowed CENVAT credit on security service to the assessee for two different periods under rule 14 of the CENVAT Credit Rules, 2004 read with section 11 of the Central Excise Act. It had also ordered for recovery of interest under section 11AB of the Act, besides imposition of penalty on the assessee under rule 15 of the aforesaid Rules. Aggrieved ....

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....elating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security inward transportation of inputs or capital goods and outward transportation up to the place of removal." The respondent is a manufacturer of excisable goods. Insofar as they are concerned, any service used by them, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the factory (place of removal) is an "input service" for purposes o....

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.....'s case (supra). The Hon'ble Supreme Court, in the context of dealing with the definition of "cosmetic" under section 39 of the Drugs and Cosmetics Act, 1940 and the definition of "drug" under another provision of the same Act, held that, when a definition clause employed the words "means and includes", it would afford an exhaustive explanation to the meaning which, for the purposes of the Act, must invariably be attached to the word or expression. The Court further held that, in such a definition, the word "includes" is extensive or explanatory. Even in the case of Lucknow Development Authority (supra) cited by the learned counsel, it was held that the word "includes" was very generally used in interpretation clauses in order to enlarge t....

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....e of goods. As regards services received after the clearance of the goods from the factory, the credit would be extended on services received up to the stage of place of removal (as per section 4 of Central Excise Act). In addition to this, services like advertising, market research etc. which are not directly related to manufacture but are related to the sale of manufactured goods would also be permitted for credit." If the principle of allowing CENVAT credit on taxable services is decipherable from the above paragraph, I note that it covers three cases. Firstly, services which are received prior to commencement of manufacture but the value of which gets absorbed in the value of goods. Secondly, services received after the clearance of ....