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TMI Blog2008 (12) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... igible to avail the credit of Service Tax paid - E/233-236/2008 - 1419-1422/2008 - Dated:- 31-12-2008 - S/Shri T.K. Jayaraman, Member (T) and M.V. Ravindran, Member (J) Shri N. Anand, Advocate, for the Appellant. Mrs. Sudha Koka, SDR, for the Respondent. [Order per : M.V. Ravindran, Member (J)]. - All these four appeals are directed against Orders-in-Appeal No. 132/2007 dt. 17-12-2007; OIA No. 133 134/2007 dt. 17-12-2007 OIA No. 128/2007 dt. 24-12-2007 passed by the Commissioner 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 appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the case of Victor Gaskets India Ltd. v. CCE, Pune-I as reported in 2008 (10) S.T.R. 369 and CCE, Nasik v. Cable Corporation of India Ltd. - 2008 (12) S.T.R. 598 (Tribunal) = 2008 (87) RLT 783 (CESTAT-Mum.) for these submissions. 4. The learned SDR would submit that the input stage credit on the outdoor catering services and transportation charges and group insurance policy can never be, by any stretch of imagination considered as input services. It is her submission that the assessee has provided these 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 activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evi - 2002 (7) SCC 273. A similar observation was made by the Apex Court in the case of Peer less Finance (supra) referred to by the ld. Jt. CDR that the word include is very generally used in interpretation clauses in order to enlarge the meaning of words or phrases occurring in the body of the statute; and when it is so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import, but also those things which the interpretation clause declares that they shall 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, adjustment for stock of work-in-progress, finished goods, recoveries for sales of scrap, wastage etc., shall be made. 5.2 Direct wages and salaries Direct wages and salaries shall include house rent allowance, overtime and incentive payments made to employees directly engaged in the manufacturing activities. Direct wages and salaries include fringe benefits such as: (i) Contribution to provide fund and ESIS (ii) Bonus/ex-gratia payment to employees (iii) Provision for retirement benefits such as gratuity and superannuation (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, conve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of CCE v. Cable Corporation of India Ltd. (supra) held as follows: 7. I find that input services has been defined under Rule 2(1) of Cenvat Credit Rules, 2004 which is reproduced as below:- 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 of final products from the place of removal, and includes services used in relation to setting up, modernization, 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or as part of business activity for promoting the business as any facility given to the employees will result in greater efficiency and promotion of business. 5.3 We find that the question of input stage credit on the group insurance health policy for the employees/workers of the appellant would also fall under the same category as per the law decided by the Tribunal in the above two cases. 5.4 Accordingly, we are of the considered view that the ratio as reproduced by us herein above of the decisions of the Tribunal will squarely cover the issue in favour of the appellant. Accordingly, the impugned orders are set aside and all the appeals are allowed with consequential relief, if any. (Pronounced in open Court on 31-12-2008) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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