2012 (6) TMI 172 - AT - Central Excise

Withdrawal of Delay Condonation Application Impacts Appeal Outcome; Cenvat Credit for Rent-a-Cab Services Upheld

The application for condonation of delay in filing cross-objections was withdrawn during the proceedings, leading to its dismissal. The appeal against the ... Cenvat credit of the service tax paid on Rent-a-Cab service - Cabs utilised for the purpose of transportation of employees from various places to the place of work and vice-versa - Held that:- In case of CCE v. Stanzen Toyotetsu India (P.) Ltd.(2011 (4) TMI 201 (HC)), it has been held that any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products constitutes input service. The catering service, rent-a-cab and transportation services and the tax paid on the said services are stated as input services. Therefore, issue decided in favour of the assessee. Issues Involved:1. Condonation of delay in filing cross-objection2. Availment of cenvat credit on Rent-a-Cab serviceAnalysis:Condonation of Delay in Filing Cross-objection:The learned counsel for the appellant initially filed an application for condonation of delay in filing cross-objections against a specific appeal. However, during the proceedings, the counsel decided to withdraw the application. Consequently, the application for condonation of delay and the cross-objections were dismissed as withdrawn. The appeal against the original order was then taken up for disposal.Availment of Cenvat Credit on Rent-a-Cab Service:The main issue in this case revolved around the availment of cenvat credit for the service tax paid on Rent-a-Cab service. It was acknowledged that the cabs were used by the respondent for transporting their employees to and from work locations. The learned counsel referenced a judgment from the Hon'ble High Court of Karnataka in a similar case involving service tax credit on Rent-a-Cab service and Outdoor Catering services. The High Court had previously ruled that services like rent-a-cab and catering, used directly or indirectly in relation to the manufacture of final products, qualify as input services eligible for credit. As the issue was settled by the High Court's judgment in the case of CCE Bangalore vs. Stanzen Toyotetsu India (P.) Limited, the appellate authority's decision was deemed correct, legal, and without any flaws. Consequently, the appeal was rejected based on the settled legal position established by the High Court's ruling.This detailed analysis of the judgment highlights the withdrawal of the application for condonation of delay and the crucial aspect of cenvat credit eligibility for Rent-a-Cab service, emphasizing the legal precedent set by the Hon'ble High Court of Karnataka in a similar case.