TaxTMI 
TaxTMI 
2025 (7) TMI 335
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....order). 2. Brief facts of the case are that the appellant is engaged in the manufacture of block cylinders and head cylinders of engines suitable for motor vehicles falling under Heading 84099191 of CETA, 1985. The appellant availed CENVAT credit of duty paid on the inputs, capital goods and input services and utilized the same for payment of duty on the goods manufactured by them. Based on specific intelligence that the appellant availed CENVAT credit of Service Tax on certain ineligible services that were used for initial setting up of the new factory, such as landscaping, long term lease rent, basic infrastructure development services like electricity, blacktopping of roads, erection of prefabricated factory sheds, installation of fir....
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....uminium VS Commissioner of Central Excise, Customs and Service Tax, Bhubaneswar - 2023-TIOL- S02-CESTAT-KOL He stated that even after the deletion of the words 'input services in relation to 'setting up' of factory from 01.04.2011, the eligibility to credit was retained in the main part of 'input service' definition which clearly envisages that 'input service' means any service 'used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products, upto the place of removal". It could be seen from the agreement with M/s. Ford India P Ltd that the lessor viz M/s. Ford India P. Ltd would conduct an environment due diligences to test the quality of environment including the soil and ground wat....
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....riod of time limit cannot be invoked. Therefore, the invoking of extended period of time limit and imposition of penalty under sec.11AC read with Cenvat Credit Rule 15(2) is not proper. He prayed for setting aside the impugned order and granting consequential relief. 3.2 The Ld. AR Shri Sanjay Kakkar for the respondent has reiterated the points given in the impugned order. He has stated that the amendment to a section cannot be held to be redundant and the same legal position cannot be maintained before and after the section was amended. He prayed that the appeal may be rejected. 4. We have heard the rival parties and have carefully gone through the appeal. We find that the legal dispute pertains to whether the deletion of the phrase ....
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....nufacturer, 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 modernization, renovation or repairs of a factory, remises, of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal." ....
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.... the Tribunal in the case of Pepsico India Holdings Pvt. Ltd., Vs. CCT, Tirupati, 2021 (7) TMI 1094-CESTAT Hyderabad = 2021- TIOL-448-CESTAT-HYD. ***** ***** ***** 11 we observe that the subject input services have a direct nexus with the manufacture of finished goods in the 'means' clause of the definition of input services. Accordingly we hold that even if the word 'setting up of a factory' has been specifically excluded from the definition w.e.f.01.04.2011, such services are covered within the ambit of main clause of the definition. Hence, it would still qualify as an input service as per Rule 1(I) of CCR, 2004. In the light of the above discussions, we allow the Cenvat credit availed by the Appellant on....
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....ify as input service as per Rule 2(l)(ii) as applicable post 1.4.2011. Although setting up the factory is not manufacture in itself, it is an activity directly in relation to manufacture. Without setting up the factory, there cannot be any manufacture. Services used in setting up the factory are, therefore, unambiguously covered as 'input services' under Rule 2 (l) (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 ....