9911796707
TMI Blog2014 (9) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the appellants are engaged in providing commercial training and coaching services under section 65 (105) (zzc) of the Finance Act, 1994. During the course of audit of records of the factory, it was observed that the appellants have taken input service credit on outdoor catering and mandap keeper services. The show cause notice was issued to the appellants alleging that the appellants have wrongly availed input service credit on catering and mandap keeper services in contravention of provisions of rule (l) (i) read with Rule 3 of Cenvat Credit Rules, 2004. Notice for recovery of service tax Rs. 45,220/- with interest under Rule 14 of Cenvat Credit Rules and imposition of penalty under Rule 15 of Cenvat Credit Rules was issued. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation of inputs or capital goods and outward transportation up-to the place of removal. 4. On the above basis, request was made to grant the input service credit. 5. On the other hand, ld.DR has relied upon the judgement of Hon'ble Bombay High Court in the case of CCE, Nagpur vs. Ultratech Cement Ltd.-2010 (260) ELT 369 (Bom.) specifically to para 37 of the judgement where there is also reference to the judgement of Bombay High Court in the case of Coca Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service used in relation to the business of manufacturing the final product would be an eligible input service. 6. In para 39, there is also reference to the judgement of Larger Bench of CESTAT in the case of GTC Industries Ltd. wherein it has been held that the credit of service tax would be allowable to a manufacturer even in cases where the cost of the food is borne by the worker. That part of the observation made by the Larger Bench cannot be upheld, because, once the service tax is borne by the ultimate consumer of the service, namely the worker, the manufacturer cannot take credit of that part of the service tax which is borne by the consumer. It has been stated that the proportionate credit to the extent embedded in the cost of food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r there is no allegation has been made in the show cause notice by the revenue. Considering the submission of ld. Counsel and after going through the judgment in the case of Toyota Kirloskar Motors Pvt. Ltd specifically in para 8 and 11 wherein these type of activities have been given a broad interpretation and input service credit has been allowed. I find force in the contention of the appellants. Further, present facts are similar to the facts of judgement quoted by the appellants. Following the judgement as above, I am of considered view that input service credit has rightly been availed at that relevant time.
12. In view of above, appeal is allowed.
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