Shri B.S.V. Murthy, Member (T)

1. Cenvat credit of Service tax taken on Courier Services has been denied to the appellant and penalty has been imposed on the ground that courier service is not an input service. Learned consultant on behalf of the appellants submitted that courier service was used by the appellant for delivery of documents to inland and foreign buyers, payments by cheque and sending demand drafts and for business enquiries and not used for despatch of finished materials. He also submits that the issue is squarely covered by the decision of this Tribunal in the case of Cadila Healthcare Limited v. C.C.E., Ahmedabad - : 2010 (17) S.T.R. 134 (Tri. Ahmd.) and in the case of M/s. Meghachem Industries in the appeal No. E/26 of 2010 vide Order No. A/770/WZB/AHD/2011, dated 4-4-2011 : [2011 (23) S.T.R 472 (Tri.-Ahmd.)]

2. Learned DR submitted that after the amendment of definition of input services with effect from 1-4-2008, the credit of Service tax on input services would be available only up to the place of removal and therefore, in view of the amendment the appellants are not eligible for the cenvat credit.

3. I have considered the submissions made by both the sides. According to definition of input service, it means that any service used by the manufacturer directly or indirectly in or in relation to manufacture and clearance of final product up to the place of removal and includes the services used in relation to business activities. The lower authorities have taken into consideration only the first part of the definition which provides that input service means any service used by the manufacturer in or in relation to manufacture and clearance of final products up to the place of removal and have not taken into consideration the inclusive part of the definition. The inclusive part of the definition provides that credit is available in respect of input services for activities relating to business. In view of the wide definition of input service in the inclusive part of definition and also in view of the decisions cited by the learned consultant which are squarely applicable to the facts of this case and which have been rendered in respect of courier service only, appellant is eligible for the cenvat credit. It is also to be taken note of that courier service is being used by the appellant for sending documents, cheques and demand drafts etc. and not for despatch of final products. In view of the discussions above, the appeal is allowed with consequential relief to the appellants.

Dictated and pronounced in the Court