TaxTMI 
TaxTMI 
2026 (8) TMI 94
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.... pond as well as for the services used for loading and unloading, freight charges etc., incurred for movement of the Fly Ash to the factory site. The appellant has also taken credit in respect of inputs, input services and capital goods used towards maintenance of Fly ash pond. On the ground that the services were rendered outside factory premises of the appellant and hence the Cenvat credit is not eligible, a Show Cause Notice (SCN) was issued for the period January, 2016 to June, 2017. After due process, the Adjudicating Authority confirmed the demand of Rs. 56,69,721/-. The demand was affirmed by the Commissioner (Appeals). Being aggrieved, the appellant filed their appeal before this Tribunal. 2. The Learned Counsel appearing on behalf of the appellant submits that the issue is no more res-integra. He relies on the following case laws; i. CC, Nagpur Vs. Ultratech Cement Ltd - 2012 (278) ELT 523 ii. Birla Corporation Ltd. Vs. CCE, Lucknow - 2014 (34) STR 589 (Tri.-Del). iii. General Motors India Pvt. Ltd Vs. Commissioner of Central Excise and Service Tax, Vadodara-II (2024) 15 Centax 124 (Tri.-Ahmd) iv. Linde India Ltd Vs. Commissioner of C....
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....transportation of inputs or capital goods and outward transportation upto the place of removal;" 7. This Rule allows the appellant to take credit for the input services used in the manufacture of dutiable goods. 8. We find that on the very same issue, the Tribunals have held as under: CC, Nagpur Vs. Ultratech Cement Ltd 2012 (278) ELT 523 (Tri.-Bom.) 5. The CENVAT Credit to the respondent was denied as proposed in the show-cause notice on the basis of that these services were received outside the factory premises. The CENVAT credit on input service is available as per Rule 2(1) of the CENVAT Credit Rules, 2004 which is reproduced here as under :- (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, 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 res....
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....or erection, installation & commissioning, repairing and maintenance and insurance of the fly ash extraction plant installed by the appellant at the Thermal Power Plant, these services have to be treated as the services sed in or in relation to the manufacture of the cement by the appellant and would be eligible for Cenvat credit. In view of this, the impugned order is not sustainable. The same is set aside. The appeal is allowed. Linde India Ltd Vs. Commissioner of CGST & CX, Rourkela (2024) 23 Centax 101 (Tri.-Cal) 5. It is seen that in the case of Mangalam Cement Limited case cited supra, the issue was identical and the Tribunal has held as under:-. 4. On examination of the monthly ER-1, it was noticed that the appellant had availed the cenvat credit on input services which were actually used by them in the setting up of their new unit MGU which is not admissible after amendment of the definition of input service w.e.f 01.04.2011. On examining the details, it was observed that the appellant had included all the bills and payments made from October 2013 to 03.02.2014 in respect of various services specified though the commercial production started only ....
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....an inclusive part of the definition. This inclusive part specifically included the services availed for setting up the factory. After 1.4.2011, it has three parts- a main part, an inclusive part and an exclusive part. The services used for setting up the factory are neither in the inclusive part of the definition nor the exclusive part of the definition. Therefore, such services were neither specifically included nor were specifically excluded. 17. It takes us to the main part of the definition which must be examined. If it is wide enough to cover the services in question, cenvat credit will be available, otherwise it will not be available. The main part includes "services used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal. " The term manufacture is not defined in the Rules. Xxxxxxxxx 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 manufacture under section 2(f) of the Central Excise Act. Any service which is used not....