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TMI Blog2010 (9) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Sudha Koka, SDR, for the Respondent. [Order] . - The impugned order sustained denial of Cenvat Credit of service tax paid on catering services and rent-a-cab services during the period May, 2007 to December, 2007. The Original Authority had demanded a total amount of Rs. 1,07,983/- being inadmissible Cenvat Credit along with applicable interest in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. He also imposed equal amount of penalty on the appellants under Rule 15(3) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. The break up of the demand is rent-a-cab services Rs. 27,920/- and catering services Rs. 80,063/-. The impugned order sustained the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CE, Mumbai-V v. GTC Inds. Ltd. [2008-TIOL- CESTAT-MUM-LB = = 2008 (12) S.T.R. 468 (Tri. - LB)] These are specifically relied on in support of admissibility to input service credit of tax paid under outdoor catering service. So far as, the service tax paid under the category rent-a-cab operator service, they relied on the following case laws :- (1) CCE, Hyderabad v. Deloitte Tax Service India Pvt. Ltd. [2008 (11) S.T.R. 266 (Tri. Bang.)] (2) Mundra Port Special Economic Zone Ltd. v. CCE, Rajkot [2008-TIOL-1691-CESTAT-AHM = 2009 (13) S.T.R. 178 (Tri.-Ahmd.)] 3. During the hearing, the Senior Manager of the assessee appeared and submitted that the assessee had to necessarily provide transport for its employees as the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -MUM = 2010 (19) S.T.R. 52 (Tri.-Mumbai)] (b) CCE, Nagpur v. Manikgarh Cement Works [2009-TIOL-2059-CESTAT-MUM = 2010 (18) S.T.R. 275 (Tri.-Mumbai)] (c) CCE, Chennai v. Sundaram Brake Linings Ltd. Others [2010-TIOL-863-CESTAT-MAD = 2010 (19) S.T.R. 172 (Tri.-Chennai)] 5. I have carefully considered the case records and rival submissions. There is no dispute that the impugned services are activities related to business of the assessee. The definition of input service in Rule 2(l) of Cenvat Credit Rules reads as under :- 2(l) input service means any service - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpret Rule 2(l) of Cenvat Credit Rules in so far as it applies to input services and have held that unless the services had a nexus directly or indirectly with the manufacture of the final products they would not be input services as envisaged in Rule 2(l). 6.1 I find that this reliance is misplaced. As the Apex Court did not consider the statutory definition of input service in the said judgment, in my view, the ratio of the judgment of the Apex Court in Maruti Suzuki Ltd. case cannot be applied to interpret the scope of input services . In the definition of input service also, there is a specific and substantive part as well as an inclusive part. In the inclusive part, activities related to business are also included. Activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on Regional Director v. High Land Coffee Works - 1991 (3) SCC 617, the High Court held that the expression means and includes was exhaustive. By the word includes services which may otherwise have not come within the ambit of the definition clause were included and by the words means these were made exhaustive. The next expression considered from the definition was such as . The words such as were held as illustrative and not exhaustive. In the context of business, those were services, related to the business. The expression business was an integrated/continuous activity and was not restricted to mere manufacture of the product. Therefore, activities in relation to business could cover all the activities that were related to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertisement services having a connection with the manufacture of the final product. This test would also apply in the case of sales promotion. This was the ratio of Coca Cola India judgment. It would, therefore, appear that all services which constitute activities related to business need not have a nexus with manufacture in a manner different from what was explained in the Coca Cola India case by the Hon ble High Court. 8. In the instant case it is not the case of the Revenue that the impugned services have no bearing on the cost of production and assessable value of its final products. Therefore, the service tax paid by the assesee under rent-a-cab service and outdoor catering service to respectively transport its employees to the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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