TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1192
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....ich an increased amount of raw material namely, iron ore concentrate, was required by the steel plant. To meet such enhanced requirements of the Jamshedpur Steel Plant, the following projects were commissioned as part of the modernisation scheme at Joda East Iron Mines for increased production if iron ore concentrates: - (i) Dry Circuit Material Handling Plant (ii) Material Handling System (iii) Rapid Loading Stations (iv) Direct Entry Railway Siding (v) Iron Ore Slime Dam (vi) Rain Water Harvesting Project During the process of such modernisation of the Joda East Iron Mine, the Appellant had received various input services from Financial Year 2009-10 onwards. The appellant availed credit on such input services, during the period from 01.04.2011 to 31.03.2014. Availment of such credit has been duly indicated by the appellant in their monthly ER-1 returns. 2.2 During the course of the EA-2000 audit and scrutiny of the appellant's ER-1 Returns, the Department issued letters, requesting the appellant to reverse the credit availed towards input services received in connection to the appellant's modernisation of factory. 2.3....
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.... 3.1 He further submits such input services on which the disputed credit has been availed, were utilised in connection to such modernization undertaken at the appellant's unit at Joda East Iron Mines. There is no question of setting up a factory as the mines wherein the activity of mining takes place has remained unchanged since 1956. The modernization is of the following : (i) Dry Circuit Material Handling Plant (ii) Material Handling System (iii) Rapid Loading Stations (iv) Direct Entry Railway Siding (v) Iron Ore Slime Dam (vi) Rain Water Harvesting Project 3.2 It is his humble submission that during the underlying period, the definition of input services under Rule 2(l) of the Cenvat Credit Rules, 2004, is covered by inclusive clause of the modernization of the factory. 3.3 To support his contention, he relies on the following case laws : (i) Adroit Pharmachem Private Limited Versus Commissioner of Central Excise & ST, Vadodara (2022 (1) TMI 59 - CESTAT AHMEDABAD) ; (ii) Pepsico India Holdings Pvt. Ltd. v. CCT, Tirupati, 2021 (7) TMI 1094 - CESTAT HYDERABAD ; (iii) M/s. Aditya Aluminium Ver....
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....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. 8.. We observe that the aforesaid definition has three limbs- (1) 'means clause' (2) 'includes clause' (3) excludes clause. It is seen that the credit in dispute, which was availed during the relevant period, were inter alia used for setting up of the plant. These input services are directly linked to the manufacture of the final product in as much as 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 a factor are covered within the ambi....
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....l 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 Excise Appeal No. 76189 of 2018 6 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 their production or manufacture on his own account. 20. Thus, the term 'manufacture' itself is very wide and includes anything incidental or ancillary to manufacturer. 21. For a service to qualify as 'input service' under CENVAT Credit Rules, 2004 post 2011, the service in question need not be covered even by the very wide definition of manufacturer under section 2(f) of....
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....reamble 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 service used by the appellant is for modernization of the coal loading process. The definition of input service specifically includes 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 of factory" has not been retained in the definition of input services post 01.04.2011, the same will not mean that the benefit of credit has been taken away by the legislature. The relevant portion of the decision is reproduced below....... 7. We thus find that services used for setting up of the factory even after 01.04.2011 would be eligible for credit." 10. We observe that similar position has also been held in ....