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2013 (8) TMI 158 - AT - Central ExciseCenvat credit - Service Tax paid on rent a cab service - Commissioner granted credit - Held that - 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 - Following decision of Commissioner of Central Excise, Bangalore-III, Commissionerate Versus Stanzen Toyotetsu India (P.) Ltd. 2011 (4) TMI 201 - KARNATAKA HIGH COURT and Commissioner of Central Excise Versus M/s Federal Mogul Goetze (India) Ltd. 2011 (9) TMI 120 - PUNJAB AND HARYANA HIGH COURT - Decided against Revenue.
Issues:
1. Eligibility of manufacturer of cement for Cenvat credit of Service Tax paid on rent a cab service for employee transportation. Analysis: The judgment revolves around the eligibility of a cement manufacturer to claim Cenvat credit for the Service Tax paid on rent a cab service used to transport employees to and from the factory. The disputed Cenvat credit amount is Rs.1,49,992. The adjudicating authority upheld the demand for this amount, along with interest and penalty. However, the Commissioner (Appeals) allowed the appeal, leading to the Revenue filing an appeal against this decision. During the proceedings, the learned DR argued that the rent a cab services for employee transportation did not have a nexus with the manufacturing process of the final product, hence should not qualify as input services. On the other hand, the advocate for the respondents cited a judgment of the Karnataka High Court and defended the impugned order, asserting that there was no flaw in it. After considering the arguments from both sides and examining the records, the judge noted that similar issues had been addressed by the Karnataka High Court and the High Court of Punjab and Haryana in previous cases. Referring to these precedents, the judge found no fault in the impugned order and dismissed the Revenue's appeal. The judgment was pronounced in the open court, bringing the case to a close.
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