Cenvat credit is allowable on services integral to the manufacturing and export processes, affirming a wide interpretation of 'input service' under CENVAT Credit Rules.

JUDGMENT

Mr. G.S.Sandhawalia, J. - The present appeal filed under section 35(G) of the CENTRAL EXCISE ACT , 1944 (in short 'the Act') is directed against the order dated 21.02.2019 (Annexure A-3) passed by the Customs Excise and Service Tax Appellate Tribunal, Chandigarh (in short 'the Tribunal'). The Tribunal by a common order had allowed the appeal filed by the respondent-assessee (herein) and dismissed the appeal filed by the Revenue. The Tribunal recorded that for the services in question in which credit is denied had been received prior to 01.04.2011 and by placing reliance upon the judgment of the Bombay High Court in Commissioner of Central Excise v. Ultratech Cement Ltd. , 2010 (260) ELT 369, it went on to hold that any service availed by an assessee being a manufacturer of excisable goods would be entitled to avail credit in terms of Rule 2(l) of CENVAT CREDIT RULES , 2004. The services having been availed were for technical assistance for engineering design, development, manufacture, testing, quality control, sale of the goods and after-sale service in accordance with agreement, the benefit was granted to avail credit on the said services and the denial of credit of Rs.96,17,096/- was set aside by allowing the appeal.

2. Similarly while dismissing the revenue appeal, it was noticed that the Commissioner had granted the credit of Rs.16,68,71,949/- for the services received by the assessee at Mundra Port and JNPT Port. The same was for the service availed for export of final product from the said ports in which the assessee had taken land on lease at JNPT Port and also set up a work shop for inspection and minor repairs. A finding was recorded that having remained the owner of the goods till the export of the goods, the entitlement to avail Cenvat credit had been rightly allowed while rejecting the claim that matter was liable to be remanded for getting a finding under each head of service. The port being the place of removal of goods, it was held that the respondent-assessee is entitled to avail credit on the service received. Similarly, for the services received for ONGC Mumbai, it was held that output service of man power recruitment and supply agency service to ONGC was being done by providing drivers and, therefore, the entitlement was there to avail credit on the said service being output service provider. Similarly, for the I.T. Software services, it was noticed that the assessee had network of dealers all over the country who purchase vehicles and sell them to customers and a software/computerized network date base called the Dealer Management System was in operation. The same was the mode of communication for issuing circulars, instructions to dealers and service was integral part of the assessee and for management of data, maintenance and repair of the vehicles, after sale service in warranty period. Resultantly, the assessee was held entitled to avail benefit of the credit on the said service.

3. The Cargo Handling Services for Export and CHA issue was dealt with that the place of removal was the place of export and, therefore, there could not be any dispute on the said issue to avail credit on the said service. The warehouse and storage service was dealt with by noticing that the same had been availed for storage of vehicles which were meant for export and credit could not be denied which had been rightly given by the Commissioner. The land survey service (Real Estate Consultant), which was not related directly or indirectly to manufacturing activity, was considered. In the factual background that the company had used the same for setting up regional and zonal offices etc. across India so that the