9911796707
TMI Blog2017 (10) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. - ST/87295 to 87297/13 - A/89295-89297/17/STB - Dated:- 30-8-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Ms. Mansi Patil, Advocate for Appellant Shri M.K. Sarangi, Addl. Commr. (A.R) for respondent ORDER Per : Ramesh Nair The issue involved in the present case is the admissibility of the Cenvat Credit on the services namely Rent-a-Cab Service and Travel Agent Service. The adjudicating authority denied the Cenvat Credit on the ground that it is for personal use of the employees. 2. Ms. Mansi Patil, Ld. Counsel appearing on behalf of the appellant submits that the Rent-a-cab service is used for meeting of their customers by the branch employees for business purpose and for transportation of employees from railway station/other location to the business premises from the bank. Therefore it cannot be said that the Rent-a-cab service is used for personal purpose of the employee but the entire services is used in relation to the business activity of the appellant. As regard travel agent service she submits that these services are used for booking of tickets for business travel of employees in relation to the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no longer res integara as the same has been consistently decided that the cenvat credit in respect of travel agent service and Rent-a-cab service is admissible. Some of the judgments deciding the issue in hand are reproduced below: (i) Stanzen Toyotetsu India (P) Ltd. (supra) held that - 5.2 As regards the Service tax paid on the transportation of the employees, we find that the Tribunal in the case of CCE v. Cable Corporation of India Ltd. (supra) held as follows : 7. I find that input services has been defined under Rule 2(l) of Cenvat Credit Rules, 2004 which is reproduced as below :- Input Service means any service - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see to these workers to reach the factory premises in time which has a direct bearing on the manufacturing activity. In fact the employee is also entitled to conveyance allowance. It also would form part of a condition of service and the amounts spent on the conveyance of the employees is also a factor which will be taken into consideration by the employees in fixing the price of the final product. By no stretch of imagination can it be construed as a welfare measure. It is a basic necessity. To ensure that the work force comes on time at the work place, the employers have taken this measure which has a direct bearing on the manufacturing activity. At any rate it is an activity relating to business. (ii) Cable Corporation of India Ltd.(supra) held that- 7. I find that input services has been defined under Rule 2(1) of Cenvat Credit Rules, 2004 which is reproduced as below :- Input Service means any service - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products constitutes input service. The catering service, rent-a-cab and transportation services and the tax paid on the said services are stated as input services. In that view of the matter, the substantial question of law framed in this appeal is answered in favour of the assessee and against the revenue. (iv) Hindalco Industries Ltd. (supra) held that- 6. The legality of the claim that 'rent-a-cab service' is an 'input service' for application of CENVAT Credit Rules, 2004 is now settled. It merely remains to ascertain if there is any reason to discountenance any part of the claim because of alleged use of the same service for purposes other than business. 7. The contract does not leave any room for doubt that the fixed consideration is for a specified distance to be covered every month for transportation of employees to and from the factory. We observe from the invoices that this is so. No evidence has been furnished on behalf of Revenue that the buses were used for any other purpose. The lower authorities have also not rendered a finding to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed on Electricity Charges, he has not accepted the appellant's Maruti Suzuki Ltd. Vs CCE Delhi, Sundram Brake Linings Others Vs CCE and Vandana Global Ltd. Vs CCE . The decision in the case of Maruti Suzuki Ltd. is no longer good law in view of Hon'ble Supreme Court's decision in the case of Ramala Sahkari Chini Mills Ltd. Vs CCE Meerut-I- 2016-TIOL-20-SC-CX-LB. The Tribunal's ruling in Sundaram Brake Linings Others Vs CCE stands overruled by the Hon'ble Madras High Court in their own case reported in 2016 (41) STR 168 (Mad.) = 2015-TIOL-580-HC-MAD-CX. The ratio laid down by Tribunal's LB in the case of Vandana Global would have no application to the facts of the present case as that was a case dealing with eligibility of cenvat credit on supporting structures. contention that the services were in respect of rented office buildings as they have not explained as to how electricity charges attract service tax and usage of electricity or related service used in rented 'office' building have no nexus with output service. To deny credit on these three impugned service, he placed issue on the judgement of the Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
