The term 'input service' under the Cenvat Credit Rules should be interpreted broadly to cover all services having a nexus, whether direct or indirect, with the manufacturing process or business operations, including services mandated by law as necessary for factory operations.

S. S. GARG :

This order will dispose of eight appeals, out of which seven appeals (viz. E/60153 to E/60159/2013) are filed by the Assessee and one appeal (viz. E/60604/2013) is filed by the Revenue, arising out of a common impugned order dated 30.07.2013 passed by the Commissioner of Central Excise, Delhi-III, Gurgaon. Vide the impugned order, the learned Commissioner has confirmed the demand amounting to Rs.3,87,87,373/- against wrongly availed Cenvat Credit along with equal penalty and applicable interest; however, in respect of input service namely “Manpower Supply for Canteen Service”, he has dropped the demand of Rs.59,57,187/-.

1.2 Since all the appeals are arising out of a common impugned order, therefore, all appeals are taken up together for discussion and decision.

2. Briefly stated facts of the present case are that the Assessee M/s Hero MotoCorp Ltd (‘HMCL’) was inter alia engaged in manufacture and clearance of two wheelers failing under Chapter 87 of the First Schedule to Central Excise Tariff Act, 1985 and spare parts thereof. The Assessee was availing the Cenvat Credit of duty paid on inputs, input services and capital goods as per the Cenvat Credit Rules, 2004 (‘CCR, 2004’). The department entertained the view that the Assessee was availing Cenvat Credit on certain ineligible input services, in respect of which, such credit was not admissible to the Assessee on the ground that such input services were not used for providing output services and were not used directly or indirectly in relation to manufacture of final product as per Rule 2(l) of the CCR, 2004.

2.1 In the above background, the department issued seven Show Cause Notices (‘SCNs’) to the Assessee for the period 01.04.2004 to 31.03.2012 alleging that no Cenvat Credit on input services is admissible to the Assessee in terms of Rule 2(l) of the CCR, 2004. Details of all seven SCNs issued by the department are tabulated herein below:

2.2 The Assessee filed their reply to the SCNs and contested the allegations made in the said SCNs. After following the due process, the learned Commissioner has passed the impugned order by partially confirming the demand along with equal penalty and applicable interest with respect to the following services:

1) Freight and Clearing on Export

2) Construction Service

3) Insurance/Mediclaim for Staff

4) Works Contract Service

5) Mandap Keeper’s Service

6) Interior Decorator Service

7) Club or Association 'S Services

8) Photography Services

9) Asset Portfolio and Fund Management

10) Repairing Motor Vehicle

11) Manpower Supply for Canteen Service

12) Architect Service

13) Outdoor Catering Service

14) Repair and Maintenance Service of Motor Vehicle or After Sale Service

2.3 Against the confirmation of said demand, the Assessee has preferred the present appeals. The department has also filed its appeal against the same impugned order whereby the learned Commissioner has given the benefit to the Assessee.

3. Heard both sides and perused the material on record.

 First, we take up seven appeals (viz. E/60153/2013 to E/60159/2013) filed by the Assessee.

4. The learned Counsel for the Appellant-Assessee submits that the impugned order is not sustainable as the same has been passed without properly appreciating the facts & the law and binding judicial precedents in the Assessee’s own case for the different period.

4.1 He further refers to definition of ‘input service’ as provided under Rule 2(l) of th