2010 (12) TMI 69 - AT - Service Tax

Input Services - Cenvat Credit - input service credit on the service availed on tour operator for transporting their employees to the factory from the residence and vice versa - Held that - the issue has already been settled by this Tribunal in the case of Semco Electricals P. Ltd. reported in (2009 -TMI - 76184 - CESTAT MUMBAI) by Hon ble High Court of Bombay in the case of CCE vs. Ultra Tech reported in (2010 -TMI - 78203 - BOMBAY HIGH COURT) and by this Tribunal in the case of CCE Nashik vs. Cable Corporation of India (2008 -TMI - 30004 - CESTAT MUMBAI) where it was held that the service availed by the assessee of tour operators for transportation of their employees from their residence to factory or vice versa the assessee is entitled to input service credit on the above said service as the same have been availed by the assessee in course of their business of manufacturing.

Summary

The Appellate Tribunal CESTAT, Mumbai ruled in favor of the appellant, allowing input service credit on services provided by a tour operator for transporting employees between residence and factory premises. The decision was based on previous rulings establishing entitlement to credit for such services in the course of business activities. The impugned order was set aside, and the appeal was allowed.