The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the denial of CENVAT Credit of excise duty cannot be made even if the input services are not mentioned in the inclusive part of the definition.
General Motors India Pvt Ltd, the appellant assessee used services were in or concerning the manufacture of excisable goods and other business activities concerning the goods manufactured by the assessee, and all these are considered as the input services are admissible to the assessee.
The assessee appealed against the order passed by the Commissioner (Appeals) to confirm the denial of the CENVAT credit of excise duty.
Harish Bindu Madhavan, the counsel for the assessee contended that all the services were used in or in relation to the manufacture of excisable goods and other business activities concerning the goods manufactured by the assessee.
Ashok Thanvi, the counsel for the department contended that since all the subject services are not mentioned in the inclusive part of the definition, the same do not qualify as input services.
The Bench observed that since a manufacturing unit manufactures goods, there are various activities of the services that are used directly or indirectly exclusively concerning the manufacture of the goods. it is not a case of the department that the assessee was carrying out any other activity other than the manufacture. Therefore, all the services received by the assessee are in or concerning the manufacture of the final product.
The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) held that on the ground that the input services are not mentioned in the inclusive part of the definition cannot be a reason for denial of CENVAT Credit.
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