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TMI Blog2021 (12) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... "input service", includes transportation of employees by a manufacturer from their designated pick up points to their workplace, by Bus, so as to deny the benefit of Cenvat Credit, to the Appellant/Manufacturer ? (II) Whether the services provided by a Manufacturer of transportation of its employees, from their designated pick up points to their workplace, by Bus, would amount to a service for personal use or consumption of any of the employees? (III) Whether the activity of providing bus transport services to its employees, at the cost of the Manufacturer, to reach factory in time and the expenses incurred by the Manufacturer in providing such service, (which amount is taken into consideration, while determining the final price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2011 definition of the term "input service" in Rule 2(1) of the Cenvat Credit Rules, 2004 (for short, 'the said Rules') was amended. On that premise the Adjudicating Authority disallowed cenvat credit on the ground that after the amendment, services used primarily for personal use or consumption of any employee stands excluded from the scope of "input service" and the same was thus ineligible for cenvat credit. The Adjudicating Authority therefore by the order dated 28.12.2016 disallowed cenvat credit for the period from 01.04.2011 to 31.12.2015 and ordered recovery of the same with interest under Rule 14 of the said Rules. Penalty was also imposed on the amount of said disallowed cenvat credit under Rule 15 of the said Rules. This orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or cenvat credit. In support of his submissions the learned counsel for the appellant has placed reliance on the decisions in Tax Appeal No. 939/2015 decided on 09/12/2015 (The Principal Commissioner vs. M/s. Essar Oil Limited), C.M.A.No.157/2010 with connected matters (Commissioner of Central Excise and Service Tax Vs. M/s.Turbo Energy Ltd.) decided on 26.02.2015, C.C.E. and S.T., Mangalore vs. Mangalore Refinery and Petrochemicals Ltd. 2016 (42) STR 6. and Commissioner of Central Excise vs. M/s. Stazen Toyotetsu India (P) Ltd. 2011 (23) STR 444 and submitted that on proper interpretation of the definition of the term "input service" it was clear that the appellant was entitled to seek cenvat credit even after 01.04.2011. 4. Shri S.N.Bhat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Tribunal that by virtue of the amendment dated 01.04.2011 rent-a-cab service had been excluded from the definition of the term "input service". The same was in three limbs and the material basis for denying such cenvat credit was in view of Clause (B) to Rule 2(1) of the said Rules. We find that the Tribunal was justified in disallowing cenvat credit for the reasons mentioned in the impugned order. This is also clear from a reading of Section 65(105) of the Finance Act which excludes rent-a-cab scheme. The transportation of employees from distance of about 40 kms for reaching factory is not an activity which could be said to be a part of manufacturing activity. It is merely for personal convenience of the employees to enable them t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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