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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 ..... 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. Eligibility of Cenvat credit - RentaCab service and contract bus service - used exclusively for the transportation of officers - Commissioner (Appeals) has held that they recover the cost from the employees and there is no denial of the same - Held that:- 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 denial of the entire credit is erroneous and the appellants are direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following input services namely; 1. Management, Maintenance and Repair service of helicopter owned by the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not produced any contract to prove the nature of service nor specifically confirmed that they were used exclusively 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit on services viz. Management, Maintenance Repair service, ld. counsel relied on the following case laws :- (a) 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 avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e . There is no requirement under Rule 2(l) of the Cenvat Credit Rules, 2004 which defines 'input service' 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 var ..... X X X X Extracts X X X X X X X X Extracts X X X X
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