TaxTMI 
TaxTMI 
2026 (4) TMI 291
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....t, 1985, including Chapters 72, 73, 84, 86, 27, 28 and 29. DSP is duly registered under the provisions of the Central Excise Act, 1944 (hereinafter referred to as "the Act") for carrying out manufacturing activity in the said steel plant. 2.3. During the modernization and expansion programme of DSP, Mecon Limited, a Government of India Undertaking (hereinafter referred to as "Mecon"), provided consultancy services to DSP on which service tax was payable and paid in accordance with the provisions of the Finance Act, 1994. On the strength of the bills raised by Mecon, DSP availed cenvat credit of the amount paid as service tax as reflected in the respective bills raised by Mecon in accordance with the provisions of the Cenvat Credit Rules, 2004 (hereinafter referred to as the "Cenvat Credit Rules"). The credit was availed by DSP as tax paid on input service as defined in Rule 2(l) of the said Rules. 2.5. On December 15, 2010, March 16, 2011 and February 14, 2012 three (3) show cause notices were issued by the Commissioner of Central Excise & Service Tax, Bolpur, in all of which it was alleged that DSP had contravened the provisions of Rules 3 and 4 read with Rule 9(6) of the Ce....
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....ings under the said show cause notices on May 9, 2016 at which the appellants representative duly appeared and made further submissions in support of its contentions as contained in the reply to the said show cause notices. An order in original dated May 31, 2016 passed by the Commissioner (hereinafter referred to as the "said order") whereby the Commissioner, while dropping the demand of Rs.3,16,32,314/- (out of the total demands of Rs.4,03,17,412/-), purported to confirm the balance demand of Rs.86,85,098/- availed during April 2011 along with interest thereon and imposed a penalty of Rs.15,00,000/- upon DSP. 2.9. Being aggrieved by the said order, to the extent the same has confirmed demand of Rs.86,85,098/-, along with interest and has imposed penalty upon DSP, the appellant is preferring the instant appeal. 3. The Ld. Counsel for the appellant submitted that appellant is entitled to avail Cenvat Credit on input services used for setting up plant and factory after 01.04.2011. The said issue is settled in the case of Brahmani River Pellets Limited Versus Commissioner of CGST & CX, Rourkela Commissionerate, 2023 (10) TMI 287. He also relied on the following decisions: ....
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....fically omitted from the 'includes' part of the definition vide Excise Appeal No. 76293 of 2017 4 Notification No. 03/2011 dated 01.03.2011 w.e.f. 01.04.2011. Thus it is necessary to look into the definition of 'input services' w.e.f. 01.04.2011. 7. The relevant portion of Rule 2(l) w.e.f. 01.04.2011 is as under: "input service" means any service:- (i) Used by a provider of [output service] for providing an output service; or (ii) Used by a manufacturer, 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, premises 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....
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....nitions. (1) in these rules, unless the context otherwise requires: (a) (b) (1) (2) The words and expressions used in these rules and not defined but defined in the Excise Act shall have the meanings respectively assigned to them in the Excise Act. 19. Since the term '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 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 shal....