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TMI Blog2016 (4) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... Company, 2. Rent-a-cab service, 3.Management and Consultancy service. The department alleged that since the appellant Company have not proved that these services were used in or in relation to the manufacturing activity and accordingly held that credit was not available on the above mentioned services. 2. Ld. Counsel for the appellant company Shri V. S. Manoj, Advocate, argued that management, maintenance and repair service and management consultancy service are the services specified under Rule 6 (5) of the Cenvat Credit Rules. For services specified under the said sub-rule even if part of the service is used in the manufacturing activity of dutiable products, then credit of service tax paid on the entire service has to be allowed. 2.1 H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly for the company purpose. Besides, the nature of consultancy given and how it is related to the business activity of the company and clearance of their final products was also not shown. 4.2 Regarding rent-a-cab service, he mentions that this service had no nexus with the manufacturing activity since such service was availed to transport officer and executives of the appellant company from their residences to the factory and back. Further, it was also ascertained that part of the cost of such services have been recovered from the employees. As such, credit of service tax paid on the entire service cannot be dis-allowed. 5. In counter the Ld. Counsel submits that as regards rent-a-cab service, only a part of the expenses was recovered fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Force Motors Ltd. Vs CCE Pune-2009 (13) STR 692 (Tri.-Mumbai) (b) CCE Goa Vs V.M.Salgaonkar & Bros. Pvt. Ltd. 2008 (10) STR 609 (Tri.-Mumbai) [on applicability of Rule 6(5) of CCR 2004] (c) Force Motors Ltd. Vs CCE Pune-2009 (16) STR 591 (Tri.-Mumbai) (d) Final Order No.793/2012 dt. 13.7.2012 in Lakshmi Machine Works Ltd. Vs CCE Coimbatore The Ld. Advocate argues that all the above services are in relation to Business and are covered by the definition of "input services" as defined under Rule 2 (l) of CCR, 2004. 6. I have carefully gone through the case records. The issue under dispute is whether the availment of Cenvat Credit on the following services are eligible for input service credit (i) Management, Maintenan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the usage has to be in relation to a particular unit. Input service definition during the period in dispute i.e., March 2010 to April 2010 was very wide and the inclusive definition covered "activities relating to business", which has not been taken into consideration. The denial of credit is therefore incorrect and unsustainable. 8. As regards eligibility to credit on RentaCab service and contract bus service, which are used exclusively for the transportation of officers, the Commissioner (Appeals) has held that they recover the cost from the employees and there is no denial of the same. A consistent stand taken by various Courts and Tribunals is that when there is a recovery of cost, the proportionate credit should be reversed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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