2012 (12) TMI 233 - AT - Service Tax

Cenvat Credit - rent a cab - Following the decision of court in case of Commissioner of Central Excise, Bangalore-III, Commissionerate Versus Stanzen Toyotetsu India (P.) Ltd. 2011 (4) TMI 201 - KARNATAKA HIGH COURT held that - As per Rule 14 of the Cenvat Credit Rules, 2004 - As is clear from the definition any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products constitutes input service - If the credit is availed by the manufacturer, then the said service should have been utilized by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities relating to business - merely because these services are not expressly mentioned in the definition of input service it cannot be said that they do not constitute input service and the assessee is not entitled to the benefit of CENVAT credit - Rule 3 of the Cenvat Credit Rules, 2004, specifically provides that the manufacturer of final products shall be allowed to take credit, the service tax leviable under section 66 of the Finance Act and paid on any input service received by the manufacturer of a final product - Decided in favour of the assessee.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled on the admissibility of cenvat credit for service tax paid on 'rent a cab' services used to transport employees. The tribunal referred to previous decisions and set aside the Commissioner's order, restoring the adjudicating authority's decision.