2013 (6) TMI 367

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... UDGEMENT The Respondent are a manufacturer of soaps and are paying excise duty. They avail benefit of CENVAT Credit Rules 2004. The dispute in this appeal relates to CENVAT credit taken during the period 6/2006 to 7/2009 in respect of certain services availed at the Head Office of the Respondent which is situated in Chennai. The Head Office is registered as an Input Service Distributor and at the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed at the Head Office and it do not relate to the manufacturing activity and therefore, credit cannot be allowed on such services. 3. Opposing the prayer, the learned counsel for the respondent submits details of the credit denied which is as under:     (Amounts in Rupees) Sl. No. Type of Services Value of Service Credit taken 1 Tours & Travel Consultancy 13420 1700 2 Consu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e services were indeed input services for the respondent. The argument of Revenue that the services are not directly related to the manufacturing activity is not a sound argument because of the intangible nature of services in general and definition of input services at Rule 2 (l). The definition has given a very broad definition specifically including services which are usually availed at the Hea .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nt to their employees. These passes are issued by a service provider who pays service tax under Business Auxiliary Service. The appellant purchases these coupons and issue to their employees. These are like money coupons which can be exchanged for purchase of food items as also any other household items. The contention of the respondent is that providing food to employees is very essential for car .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... zed in furtherance of any processes of the company and not in furtherance of the personal needs of the employees and since nexus cannot be established CENVAT credit cannot be allowed. In this matter, I see merit in the contentions of the Revenue and I hold that the nexus to the required degree for claiming CENVAT credit on these passes is not established. Therefore, I allow the appeal of the Reven .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X