Cenvat credit on employee transport by rent-a-cab was upheld as an admissible input service.

Cenvat credit on Service Tax paid for rent-a-cab transport of employees between their homes and the factory was admissible because employee transportation to and from the factory had already been recognised by prior High Court decisions as an input service. Following that settled position, denial of credit could not be sustained, and the impugned order was set aside in favour of the assessee.

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Issues: Whether Cenvat credit of Service Tax paid on rent-a-cab service used for transporting employees between their homes and the factory was admissible.

Analysis: The issue was treated as covered by prior High Court decisions holding that transportation of employees to and from the factory constitutes an admissible input service for Cenvat credit purposes. Following that settled position, the denial of credit could not be sustained.

Conclusion: Cenvat credit on the rent-a-cab service was held admissible, and the impugned order was set aside in favour of the assessee.

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