9911796707
TMI Blog2018 (4) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... N. 3/2011 dated 18.3.2011. Matter reverted to the regular Bench for deciding the respective appeals. - DR. SATISH CHANDRA, PRESIDENT, S.S. GARG, JUDICIAL MEMBER And SHRI VB PADMANABHAN, TECHNICAL MEMBER Mr. N, Anand, Advocate, Shri Rajesh Chander Kumar And T.Vu Ajayan, Advocates, For the Appellant Mr. M. S. Nagaraj, Advocate And Mr. Rajesh Kumar. T-A, CA And Dr. Ezhilmathi, AR, For the Respondent Per: S.S. GRAG The Single Member vide its order dated 24.7.2017 has observed that there are divergence of views on the issue of availability of service tax on outdoor catering services and consequently, he has referred the matter to the President for constituting a Larger Bench to settle the issue of lawn The reference order is reproduced herein below: 2. The issue involved in this case is regarding availability of CENVAT Credit of the service tax paid on outdoor catering service . The appellant herein are an industrial unit having a manufacturing / service provider unit wherein they engaged the services of outdoor catering service for providing the catering services to their employees. Such service provider raised the bill along with service tax fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that the use of words directly or indirectly and in or in relation to are words of width and amplitude as held by the Hon'ble Supreme Court in the case of Doypack Systems ( Pvt. ) Ltd vs. UOI: 1988 (36) ELT 201 (SC). He also submitted that the word includes used in the definition denotes wider extension and cannot be treated as restricted in any sense as per the decision of the apex court in Ramala Sahkari Chini Mills Ltd, vs. CCE, Meerut-I: 2010 (260) ELT 321 (SC). He further submitted that the definition of 'input service' from 1 ,4.2011 has deleted words activities relating to business such as and adding specific clauses of inclusion and exclusion is only making explicit what was already implicit. 4.1 According to him, the definition of 'input service/ used by the manufacturer, presently continues to stipulate that it means any service used by a manufacturer whether directly or indirectly, in or in relation to the manufacture of final products and includes a wide variety of services. It is his further submission that all that has been done by the deletion of the words activities relating to business 'such as' is that words wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 (Tri, -Hyd.) M/S. Yazaki Wiring Technologies India Pvt. Ltd. vs, CCE, Chennai-Ill.' 2016-TIOL-858-CESTAT-MADa Reliance Industries Ltd vs, CCE, Mumbai: 2016 (45) STR 383 (Tri, Mum.) CCE vs. Reliance Industries Ltd.: 2018-TIOL-211-CESTAT-PIUM CCE, Belapur vs. Hyva (India) Pvt. Ltd: 2018-TIOL-259-CESTAT-MUM Hindustan Coca Co/a Beverages Pvt Ltd. vs. CCE, Nashik: 2015 (39) STR 1027 (Tri. -Mum,) M/S, FIEM Industries Ltd. vs. Cc, Chennai: 2016 (43) STR 470 (Tri. Chennai) Board's Circular No.334/3/2011-TRU dated 282.2011 Circular No. 943/4/2011-CX dated 29.42011 CBEC Circular No.120/01/2010-ST dated 1901.2010 5. Learned counsel Mr. NE Anand appearing on behalf of M/S, Toyota Kirloskar Motor Pvt. Ltd. has also submitted that the appellant has provided the outdoor catering services under a statutory obligation to provide and maintain canteen inside the factory as per Section 46 of the Factories Act, 1948 read with Rules 93 to 100 of the Karnataka Factories Rules, 1969 and non-observance of the said provisions would entail penal provisions against the appellant. He also submitted that w.e.f 1.4.2011, the definition of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts and input services that are eligible and those that are not, is clear. Allocation of CENVAT credit to exempt and taxable goods and services is also being streamlined. 6. 1 She also referred the clarification issued by the Joint Secretary vide his letter dated 28.202011 explaining the changes in CENVAT credit scheme with effect from 1.4.2011. She also submitted that the amendment in the definition of 'input service' was brought with a clear intention to reduce the litigation. There were spates of litigation on the availment of various CENVAT credits especially the input service credit involving personal use or consumption of the employees, it is the case of the Revenue that the services which were meant for the personal use or consumption of the employees were not eligible as input service credit. The said amendment was brought much after deliberations in order to reduce disputes and to bring greater clarity as to what are credits that are eligible and not eligible by consciously excluding certain specific categories of services. 6.2. Therefore, the outdoor catering service was one of the input services which have been specifically excluded She further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs, accounting, auditing, financing, recruitment apd quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal; bdt excludes, (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter reerred as specified services insofar as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, exceptfor the provision of one or more of the specified services; or (B)Services 'provided by way of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not a capital goods; or (BA) Service of general insurance business, servicing, repair and maintenance, insofar as they relate to a motor vehicle which is not a capital goods, except when used by (a) a manufacturer of a motor vehicle in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of CENVAT credit w.e.f. l.4.2011, when such services are otherwise covered by the main definition clause of the 'input service', To interpret, the said input clause, in such manner so as to hold that such services have direct or indirect nexus with the assessee's business and thus would be covered by the definition, would amount to defeat the legislative intent. 7.2 It is well settled that the legislative intent cannot be defeated by adopting interpretation which is clearly against such intent Further, we find that from the Budget Speech of the Finance Minister dated 28.2.2011 wherein the Hon'ble Minister has categorically stated that due to complexities there has been many legal issues on the availability of credit on a number of inputs or input services which are being rationalized by laying down clear definition so that the scope of inputs and input services that are eligible and those that are not, is clear, Further, we also find from the clarification issued by the Joint Secretary (TRU) explaining the intention of the legislature for the changes brought by way of amendment in the definition of 'input service'. Further, we also note that primarily ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
