CCE Vs. GTC INDUSTRIES LTD.

JUDGEMENT

(1.) WE have heard both sides on the issue referred to us viz. whether the senses provided by the outdoor caterers in the canteen of the manufacturer is input service, in respect of which credit can be taken by the manufacturer. For this purpose, it would be useful to reproduce the definition of input services as defined under Rule 2(l) of Cenvat Credit Rules, 2004. The said Rule reads as under.

(2.) IT was submitted by the Ld. Jt. CDR that the case laws relating to interpretation of an inclusive definition are mainly relating to definitions which are purely inclusive in nature such as "goods" defined in the Clause 2(22) of the Customs Act or Sub -section 2(f) defining manufacturer in Central Excise Act. These definitions do not contain a mixture of an express definition and an inclusion part; they are purely inclusive in nature. They do no have a preceding part of express definition (main definition) in the manner "input service" has been defined in the Cenvat Rules, 2004, which says ""input service" means any service... and includes..." ; whereas purely inclusive definition reads as manufacture includes any process ...; inputs include ...; cooked food includes...; where there is no main definition but only an inclusive definition. He referred to the decision of the Apex Court in the case of Hamdard (Wakf) Laboratory v. Dy. Labour Commissioner wherein it was observed as under:

(3.) LD . advocate, Shri Sridharan, on behalf of the appellants submits that the definition of input services uses the term "such as" which is purely illustrative but not exhaustive. The term "such as" has been defined in the Concise Oxford Dictionary. "Such as" means for example or of a kind that and in Chambers Dictionary "such as" means for example. The word "such as" acts as an adjective prefixed to a noun indicative of the draftsman's intention that he is assigning the same meaning or characteristics to the noun as has been previously indicated, but it does not prohibit any other activity which can define noun in a similar way. Therefore, the term "such as" only connotes that whatever activities are given are illustrations that relate to the business. Hence, any activity relating to business of the assessee would be covered as an input service. The usage of the words "such as" after "activity relating to business" under the inclusive part of the definition further supports that definition of the term "input service" would not be restricted to services specified thereafter. He referred to the Supreme Court decision in the case of Good Year India Ltd. v. Collector of Customs wherein it was held that "The words "such as stainless steel, nickel monel, incoloy, hostelloy" in sub -heading (2) are only illustrative of the various metals from which valves can be made but the said description is not exhaustive of the metals." Similar view has been taken in the case of Jalal Plastic industries v. Union of India , wherein Gujarat High Court has held that the products which follow the expression "such as" are illustrative and not exhaustive. Therefore, in the present case also the term "such as" cannot limit the scope of the definition of the input service once the term is used after the usage of the word "includes" in the said definition.