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TMI Blog2018 (12) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant to prove any nexus of the services availed by the assessee to the business activity of the appellants. No doubt, appellant was supposed to produce such evidence as may prove as to who actually paid the said fee. As it will be the deciding criteria as to whether the fee was paid for the company as a whole under any of its policy for enhancing employee efficiency or those have been born by the individual employee for the sake of their own entertainment. Apparently there is no such evidence on record - impugned order upheld - credit rightly denied. Health check up of employees - Held that:- It cannot be ruled out that the good health of employee will make them readily available for rendering the activities related to business. The appellants are in telecommunication business. Their employees are required to function for long hours and even at odd hours. The health of an employee may affect the activity of the appellants business - the expenditure incurred by the appellant company for getting medical check-up of their employees, though individually, is definitely an input service - credit allowed. CENVAT Credit - capital goods - desktop - chairs - fire extinguishers - Held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals), upheld the following demand. Particulars Period Covered Amount Involved Deposit/ Reversal Interest recoverable Cenvat credit on input services such as outdoor catering, club membership & medical health checkup. April 2010 to Sept. 2011 Rs.1,18,086/- (ST ₹ 1,14539/- + Cess ₹ 3,547/-) Deposited on 16.08.201 (under protest) Rs.44,701/- Cenvat Credit on items like desktop, chairs and fire extinguishers April 2010-Nov. 2011 Rs.2,75,452/- (ST ₹ 2,67,429/-+ Cess ₹ 8023/-) Deposited on 16.08.2012 (under protest) Rs.86,369 Rs.3,93,540/ Rs.1,31,070/ Still being aggrieved, the appellant is before us. 4. I have heard Ms. Sakun Arora, ld. Advocate for the appellant and Mr. Poddar, ld. D.R. for the Department. 5. For the purpose of impugned adjudication, the definition of input service has to be looked into in accordance of Section 2 (l) of Cenvat Credit Rules. Input service means:- "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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation under Section 46 of the Factories Act. The Cenvat Credit as availed there upon is therefore admissible. The same is alleged to have wrongly been denied. It is further submitted that the distinction for the services for personal use came into effect from 01.04.2011. Prior to the said period all services used to fall within the phrase activities relating to business. She has relied upon Hindustan Cococola Beverages Pvt. Ltd. v. CCE, Hyderabad- 2017 (49) STR 88 (Tri.-Hybd.) and Bharti Hexacom India Ltd. v. CCE, Jaipur-I Final Order No. 51963/2017 dated 23.02.2017. 8. While rebutting these arguments, the ld. DR submitted that the Commissioner (Appeals) has relied upon various case laws as mentioned in para A to B of para 8(B) of the impugned order and has rightly denied the outdoor catering services to be an eligible input for availing cenvat credit. 9. After hearing both the parties qua this demand, I am of the opinion as follows:- 10. The bare perusal of input definition as above, makes it abundantly clear that the services as that of outdoor catering can very much be the input service provided, the services are not used primarily for personal use or consumption of any em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as may prove as to who actually paid the said fee. As it will be the deciding criteria as to whether the fee was paid for the company as a whole under any of its policy for enhancing employee efficiency or those have been born by the individual employee for the sake of their own entertainment. Apparently there is no such evidence on record. In absence thereof, I find no infirmity in the order under challenge. The authority below has rightly relied upon the decision in the case of Mudra Port & SEZ Ltd. Vs. CCE reported as 2009 (18) STT 314 (Tri.-Mumbai) wherein, it was held that service tax paid on club house fee meant for the recreation of workers is not an eligible credit as it is not used for providing output services. I, therefore, find no infirmity in the said finding. The order to said extent is hereby upheld. HEALTH CHECKUP OF EMPLOYEES OF THE APPELALNT. 15. Ld. Counsel for appellant has submitted that facility of Medical Check-up was provided by the company to the employees under its Medi-claim Policy in view of grater assurance about the health of the employees. The said benefit has resulted in increased work efficiency of the employees, thereby ultimately affecting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yderabad). 19. Ld. DR, on the other hand, has impressed upon the findings of the Commissioner (Appeals) in para 6 of the order has impressed upon that only such category of goods as are mentioned in Rule 2 (a) (A) Clauses (i) (iii) of Cenvat Credit Rules as used for providing output services can qualify as capital goods and none other. The order to this extent is prayed to be upheld. 20. Before adjudicating, definition of capital goods needs to be looked into which is as follows:- (a) "capital goods" means:- the following goods, namely:- (A) (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.05 grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank, used- (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (2) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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