2026-VIL-1362-CESTAT-BLR-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - CENVAT Credit on services availed outside the Factory Premises - Services Used in Setting Up of Unit - Appellant, a cement manufacturer, collected fly ash from NTPC's electricity generation plant and incurred costs for loading, transportation, unloading and maintenance of the fly ash pond as per Pollution Control Board specifications - The appellant claimed CENVAT credit for services rendered at the fly ash pond as well as for loading, unloading and freight charges for movement of fly ash – Denial of credit on the ground that services were rendered outside the factory premises and hence CENVAT credit was not eligible - Whether CENVAT credit can be taken for services used in or in relation to manufacture of final products even when such services are rendered outside the factory premises - HELD - The definition of input service under Rule 2(l) of CENVAT Credit Rules 2004 does not impose any requirement that the service must be received by the manufacturer within the factory premises. The Rule states that input services include any service used by a manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance thereof up to the place of removal. The definition expressly includes services relating to procurement of inputs, setting up of factories and inward transportation of inputs which are often rendered outside factory premises - The mere location of service delivery outside factory premises does not make it ineligible for credit if it is used in or in relation to manufacture. Fly ash is admittedly the raw material and input for manufacturing cement and the services incurred in loading, unloading, transportation and maintenance of fly ash pond are directly used in relation to manufacture of cement. The services do not need to be rendered within the factory premises to qualify as input services - The CENVAT credit is available for services related to fly ash operations and other operations even when conducted outside the factory premises - The impugned order denying CENVAT credit is set aside and the appeal is allowed
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