Order Date – 30 January 2023

Parties: Maruti Suzuki India Ltd Vs CCE & ST-Gurugram

Facts –

• The Appellant, Maruti Suzuki India Ltd. was engaged in the manufacture of Engine, Transmission and their spares and components. They utilize the services of M/s Apee Eskay Enterprises Pvt. Ltd for the purpose of computer networking and cabling services for establishment of computer network/electricity network also referred to as Business Auxiliary Services.
• A show cause notices dated 05.02.2016 and 07.01.2019 were issued to the appellant alleging that the appellant has wrongly availed cenvat credit on ‘Business Auxiliary Services’ and ‘Housekeeping services’ in contravention of the provision of sub-rule (1) of Rule 3 of the Cenvat Credit Rules, 2004.

Issue – 

• Whether the appellant has wrongly availed cenvat credit?

Order –

• The Tribunal held that on analyzing of the definition of ‘input service’ as provided in Rule 2(l) of Cenvat Credit Rules, 2004 that the computer networking is specifically included in the ‘includes clause’ of the definition of input services.
• This issue is no more res-integra and has been settled by the various decisions of the Hon’ble High Courts and the Hon’ble Supreme Court. The Tribunal also relied on the decision of the Hon’ble Madras High Court in the case of Rane TRW Steering System Ltd. Vs. CCE Chennai 2018 (11) GSTL J187 (Mad.) wherein the Hon’ble High Court has considered the definition of ‘input service’ and has observed as it is well settled that the word "includes" is an inclusive definition and expands the meaning.
• The appeal is allowed.