Union Of India & Ors vs M/S Hindustan Zinc Ltd on 6 May, 2014
30. Reverting to the facts of the case it is observed that
appellant has exported PET plant from Neemrana in India to
Jamaica, a place outside India with the services to install the
same in Jamaica as received from M/s. Satnam Construction Co.
Ltd. The later company only has given services to appellant for
dismantling the said PET plant clearing, painting and repacking it
for being exported. Hence the services received from M/s.
Satnam were services exported. The activity done in India by
said M/s. Satnam is definitely a service used by the provider of
output service for providing output service. Hence, it is well
covered in the definition of input services. I draw my support
from the decision in the case of Union of India vs. Hindustan
Zinc Ltd. reported as 2007 (2014) ELT 510 where Hon'ble
High Court of Rajasthan has held that goods which are necessary
for running of plant and up-keeping of the machinery directly
involved in the manufacturing and products are eligible to avail
Modvat credit.