9911796707
TMI Blog2008 (12) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Central Excise (Appeals-II), Bangalore. Since all these appeals are in respect of the same assessee and issue being the same, they are being disposed off by a common order. 2. The relevant fact that arise for consideration are the appellant herein availed input stage credit of the Service tax amount paid by the service provider of Canteen Services, Rent-a-Cab Services and on the Group Health Insurance Services. The appellant claims that the canteen services, transportation charges for transportation of their employees and the Group Insurance Health Policy for which they have paid Service tax to the service providers, is in or in relation to the manufacturing activity. Both the lower authorities have held that the appellants are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese canteen services and transportation facilities and group insurance health policy as a welfare measure for its employees and in the background of effective management of the business. This cannot be equated that these activities are in or in relation to the manufacturing activity. She reiterates the findings of the Commissioner (A). 5. We have considered the submissions made at length by both sides and perused the records. It is undisputed that the appellant is a manufacturer and the canteen services and the transportation of the employees and group health insurance policy are all related to the employees who are working in the factory premises. 5.1 As regards the credit of Service Tax paid by catering service provider, we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l include. But the word "include" is susceptible of another construction, which may become imperative, if the context of the Act is sufficient to show that it was not merely employed for the purpose of adding to the natural significance of the words or expressions defined. It may be equivalent to "mean and include", and in that case it may afford an exhaustive explanation of the meaning which, for the purposes of the Act, must invariably be attached to these words or expressions. The context in which and the purpose for which the credit rules have been issued are clear from the press note dated August 12, 2004 issued by the Ministry of Finance, prior to introduction of the credit rules wherein the draft rules were circulated for inviting co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) Medical benefits (v) Subsidized food (vi) Leave with pay and holiday payment (vii) Leave encashment (viii) Other allowances such as children's education allowance, conveyance allowance which are payable to employees in the normal course of business, etc. The above paras of CAS-4 clearly shows that cost of subsidized food is included in the cost of production. We further note that in case of a factory having more than 250 workers under Sec. 46 of the Factories Act, 1948, it is mandatory on the part of the factories to provide a canteen facility within the factory premises and failure to comply with the provisions of Sec. 46 attracts prosecution and penalty under Sec. 92 of the Factories Act, 1948. A service tax on outdoor cateri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal." From the above definition it is very clear that the input services besides being used in or in relation to the manufacture of final products and clearances of final products from the place of removal includes a pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
