2018 (2) TMI 1111 – GUJARAT HIGH COURT – 2018 (12) G. S. T. L. 300 (Guj.) – CENVAT credit – input service – outward transportation of final products from the place of removal – Rule 2(I)(ii) of CCR – Held that: – issue has been decided in the case of COMMISSIONER OF C. EX. & CUSTOMS Versus PARTH POLY WOOVEN PVT. LTD. [2011 (4) TMI 975 – GUJARAT HIGH COURT], where it was held that main body of the definition of term ‘input service’ is wide and expansive and covers variety of services utilized by the manufacturer. By no stretch of imagination can it be stated that outward transportation service would not be a service used by the manufacturer for clearance of final products from the place of removal – credit allowed – appeal dismissed – decided against Revenue. – Tax Appeal No. 2 of 2018 Dated:- 15-2-2018 – MR. AKIL KURESHI AND MR. B. N. KARIA, JJ. For The Appellant : Mr Sudhir M Mehta, Advocate ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the ju
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S.T.R. 4 in which it was observed as under: 18. Bearing in mind the above judicial pronouncements, if we revert back to the definition of the term input service , as already noticed, it is coined in the phraseology of means and includes . Portion of the definition which goes with the expression means, is any service 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. This definition itself is wide in its expression and includes large number of services used by the manufacturer. Such service may have been used either directly or even indirectly. To qualify for input service, such service should have been used for the manufacture of the final products or in relation to manufacture of final produce or even in clearance of the final product from the place of removal. The expression in relation to manufacture is wider than for the purpose of manufacture . The words and clea
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several decisions that the expression includes cannot be used to oust any activity from the main body of the definition if it is otherwise covered by the expression means . In other words, the expression includes followed by means in any definition is generally understood to be expanding the definition of the term to make it exhaustive, but in no manner can the expression includes be utilized to limit the scope of definition provided in the main body of the definition. To our mind this was also not the intention of the Legislature in the present case. 20. There, of course, are certain areas which still remain to be cleared. It was vehemently contended before us by the counsel for the Revenue that later portion of the definition which provides for the inclusion clause limits the outward transportation service up to the place of removal. That being so, according to them, the outward transport service utilized by the manufacturer beyond the place of removal would not qualify as an input s
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