2008 (11) TMI 97

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..... r No. 1290/2008 dt. 18.11.2008 certified on 8.12.2008 in Appeal No. E/514/2008) Shri T.R. Rajesh Kumar, chartered Accountant for Appellant. Shri V. Poorna Chandra Rao, SDR for Respondent. [Order per : T.K. Jayaraman, Member (Technical)] - The issue relates to availment of input Service Tax credit on the following services. (1) Medical and personal accident policy (2) Group personal accident p .....

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..... verheads relating to production. To arrive at cost of production of goods dispatched for captive consumption, adjustment for stock of work-in-process, finished goods, recoveries for sales of scrap, wastage, etc., shall be made." 5.2 Direct wages and salaries shall include house rent allowance, overtime incentive payments made to employees directly engaged in the manufacturing activities. Contrib .....

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..... t all these services have been rendered/received in relation to the manufacture of the final products by the appellants. Hence, the input credit is definitely allowable. 3.1 With regard to the credit on Service Tax paid on landscaping, the learned Chartered Accountant read out a definition of input service which reads as follows. "Input Service" means any service, - (i) used by a provider of ta .....

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..... ation upto the place of removal. He argued that even for modernization, renovation, etc., the credit is allowable on the Service Tax paid. Therefore, it is not correct to deny the credit in respect of Service Tax paid for landscaping of the appellant's premises. 4. The learned departmental representative stated that these services are remotely connected with the manufacture of the final products .....

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..... of the office premises are included. In that view of the matter, one can include even landscaping the surround in of the factory as 'input service'. In these days, much importance is given to keeping the environment of a factory in a proper manner. In view of the above observations, I hold that the appellants are rightly entitled to credit on the services in the impugned order. Hence, I allow the .....

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