2012 (8) TMI 602

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..... earing on the manufacturing activity. As undisputed fact of the case that the services of rent a cab services were received by the respondent for transportation of their employees from their residence to the factory premises and back to the residence and the service provider is registered and respondent is discharging the service tax liability billed on on such services rendered - no ground to deny the claim - in favour of assessee.
Mr. M.V. Ravindran, J. For Appellant : Shri B.V. Joshi, A.R. For Respondent : Shri S.J. Vyas, Adv Per : Mr. M.V. Ravindran; This appeal is filed by the Revenue against order in appeal No.SKSS/190/SURAT-II/2010, dt.02.11.10. 2. The relevant facts that arise for consideration are the respondent herein .....

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..... ilment of cenvat credit. 4. Ld. counsel on the other hand would submit that the decision of the Tribunal in the case of Stanzen Toyotetsu India (P) Ltd. (supra) was challenged by the Revenue in Hon ble High Court of Karnataka by filing an appeal. He would submits that Hon ble High Court of Karnataka in a detailed order has upheld the said decision which is directly on the point as to eligibility of cenvat credit of the service tax paid by a rent a cab services for transportation of employees from their residence to the factory premises and vice versa. 5. I have considered the submissions made at length by both sides and perused the records. 6. As correctly pointed out by both sides, the issue involved in this case is only regarding el .....

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..... nce. It also would form part of a condition of service and the amounts spent on the conveyance of the employees is also a factor which will be taken into consideration by the employees in fixing the price of the final product. By no stretch of imagination can it be construed as a welfare measure. It is a basic necessity. To ensure that the work force comes on time at the work place, the employers have taken this measure which has a direct bearing on the manufacturing activity. At any rate it is an activity relating to business. 9. As regards the decision relied upon by the ld. departmental representative, I find that the said decision is of a Single Member Bench and it is also seen, as correctly pointed out by the ld. counsel for the resp .....

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