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2022 (3) TMI 506 - AT - Central ExciseCENVAT Credit - input services - Supply of Manpower for Outdoor Catering Services - Gardening Services - Rent-a-Cab Services for transportation of its employees and customers - period from August 2008 to October 2010 and from November 2010 to August 2011 - demand for the period prior to 01.04.2011 - time limitation - HELD THAT - In various decisions of the Tribunal as well as several High Courts, it has been held that the said definition has a very wide ambit and it would include almost all services used for the activities of business. For this reason, the impugned services are eligible for credit for the period prior to 01.04.2011. The definition of input service was amended with effect from 01.04.2011 which has been reproduced in paragraph 5.1 above. The definition contains an exclusion clause wherein the credit availed on Rent-a-Cab Services as well as Outdoor Catering Services has been specifically excluded - in the present case, the appellant has not furnished any evidence to show that the vehicles are capital goods for the service provider - the appellant is not eligible for credit on Rent-a-Cab Services after 01.04.2011. Supply of Manpower for Outdoor Catering Services - period after 01.04.2011 - HELD THAT - The Hon ble Supreme Court in the case of TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED VERSUS THE COMMISSIONER OF CENTRAL TAX 2021 (12) TMI 420 - SC ORDER has held that the said credit is not eligible post 01.04.2011 - the credit availed on Supply of Manpower for Outdoor Catering Services for the period after 01.04.2011 has been rightly disallowed. Supply of Manpower for Gardening Services after 01.04.2011 - HELD THAT - The service of gardening does not fall under any specific exclusion clause of the definition of input service . The appellant has availed the said services to comply with the requirements of the Pollution Control Board. For this reason, the credit availed on Manpower Supply for Gardening Services to maintain a garden / green belt within the factory premises is eligible for credit. Time Limitation - HELD THAT - It is seen that the extended period has been invoked only for the period involved in the first Show Cause Notice. The said period being prior to 01.04.2011, the argument of the Learned Counsel for the appellant is irrelevant for consideration. Appeal allowed in part.
Issues:
1. Eligibility of input Service Tax credit on various services availed by the appellant. 2. Interpretation of the definition of 'input service' pre and post 01.04.2011. 3. Applicability of credit on Supply of Manpower for Outdoor Catering Services and Rent-a-Cab Services. 4. Consideration of statutory requirements for availing certain services. 5. Invocation of extended period of limitation for the demand raised. Analysis: 1. The appellant, engaged in manufacturing industrial safety devices, availed input Service Tax credit on services like Supply of Manpower for Outdoor Catering Services and Rent-a-Cab Services. The Department disallowed the credit, leading to a dispute. 2. Pre-01.04.2011, the definition of 'input service' was broad, including 'activities relating to business.' Post-amendment, specific exclusions were introduced, affecting the eligibility of credit on certain services. 3. The appellant argued that for the period pre-01.04.2011, credit on services like Outdoor Catering and Rent-a-Cab was eligible as per the earlier definition. Post-amendment, they maintained that services availed to comply with statutory requirements should still be eligible for credit. 4. The Tribunal considered various precedents and statutory requirements, concluding that credit on services like Manpower for Gardening to maintain green belt was eligible post-amendment due to compliance needs. 5. The issue of limitation was addressed, noting that the extended period was invoked for the pre-amendment period, making it irrelevant for post-amendment considerations. Conclusion: The Tribunal allowed credit for certain services pre-01.04.2011 based on the broader definition of 'input service.' Post-amendment, credit on Rent-a-Cab and Outdoor Catering Services was disallowed, while credit for Gardening Services to meet statutory obligations was deemed eligible. The appeal was partly allowed with consequential reliefs, highlighting the importance of statutory compliance and the impact of legislative amendments on credit eligibility.
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