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TMI Blog2015 (10) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner of Central Excise (Appeals), Belapur. The details are as follow : Appeal Nos. OIA No. Period Amount (Rs.) ST/608 & 627/12 BC/84/RGD/12-13, dated 31-5-2012 October, 2004 to March, 2010 Garden Maintenance and Event Management Services - ₹ 23,79,222 Outdoor catering Services - ₹ 13,01,735 ST/745-746/12 US/467 & 468/RGD/2012 dated 6-8-2012 April, 2007 to March, 2010 Telephone Charges ₹ 1,55,915 Brokerage Services - ₹ 18,300 ST/88139/13 US/124/RGD/20 13, dated 15-5-2013 April, 2011 to March, 2012 Outdoor Catering Services - ₹ 1,130,584 The issue in the present case is on availment of credit of Service Tax paid on input services viz. Garden Maintenance services, Event Management Services, Outdoor catering Services (canteen) services, Telephone Services & Brokerage Charges. 2. The brief facts of case are the appellant, inter alia, is engaged in the business of providing 'Port' services. They are, accordingly, registered with the service tax department. The appellant uses various input services for providing the taxable output services and in turn are availing and utilizing credit of service tax paid on input services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are received prior to commencement of manufacture but the value of which gets absorbed in the value of goods. As regards services received after the clearance of the goods from the factory, the credit would be extended on services received upto the stage of place of removal (as per Section 4 of Central Excise Act.) In addition to this, services like advertising, market research etc. which are not directly related to manufacture but are related to the sale of manufactured goods would also be permitted for credit. (iv) Full credit of Service tax on services (such as telephone, security, construction, advertising service, market research etc.) which are received in relation to the offices pertaining to a manufacturer or service provider would also be allowed." 4.2 Learned Counsel further states that the rules as introduced with effect from 10-9-2004 have wide connotation than the draft definition as under the draft Cenvat Credit Rules. The term "used in relation to setting up a factory," was contemplated, it was widened to read as "used in relation to setting up, modernization, renovation or repairs of a factory or office relating to such factory". The Cenvat Credit Rules expa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot exhaustive. It establishes that whatever activities are enumerated in the Rule are only illustrations of service that relate to the business and are not exhaustive in nature. The same was reiterated in the case of Royal Hatcheries (P) Ltd., v. State of A.P. - 1994 Supp (1) SCC 429. Hence any activity, relating to business of assessee would be covered as an input service; business is an integrated/ continuous activity and is not only confined/restricted to mere provision of input services or manufacture of the product. Therefore, activities in relation to business cover all the activities that are related to the functioning of a business. 4.4 Learned Counsel further submits that, various limits of definition of input service are independent/diverse/concession/exemption. If an assessee can satisfy any one of the limbs of the definition of input service which is effectively divided into four categories as below, then credit would be available : (a) Any service used by the service provider for providing output service; (b) Services used in relation to setting up, modernization, renovation or repairs of a factory, or an office relating to such factory, (c) Services used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de and maintain adequate canteen facilities under the said Regulations. Hence as the catering services are provided by the appellant as a part of its business need & obligation to the employees who are the essential hands of the business. Without the said workers/employees, the appellant would not be in position to provide the output service. Hence, it is evident that it has a direct bearing on output services. Further the exclusion (C) clause of the definition of "Input service" post April, 2011 i.e. "(C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation and such as leave or home travel : concession, when such services are used primarily for personal use or consumption of any employee.'' will not apply in the facts of present case, as the said clause would only apply in case when such services are used primarily for personal use or consumption of an employee. The learned Counsel has cited the Hon'ble Supreme Court judgment in the case of Union of India v. Hansoli Devi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e outdoor catering service, telephone services etc. were being used to benefit the service - business of the appellant and not for benefit of the employees. Further reliance is placed on the view taken in case of BASP Industries - 2011 (24) S.T.R. 30, that credit of Service Tax paid on telephone lines installed at the residence of employees would be available. 5.3 Further the learned AR, submits that as to the contention of the appellant that the amendment vide Notification No. 03/2011-C.E. (N.T.) expressly excluding outdoor catering services vide clause (C) of the definition of Input Services, which was effective from 1-4-2011 is not applicable to employees (plural) . The DR submits that Hon'ble SC of India in Judgment in United Electrical industries Ltd [1999 (108) E.L.T. 609 (S.C.)], at para 7 of judgment had held, as provided in Sec. 13 of General Clauses Act, 1897, the word singular shall include plural and vice versa. 5.4 In relation to services rendered in case of Event Management services Appellant submits that said Input Services of Event management is an essential input service in relation to the sales promotion activities of the appellant. Hence Cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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