Input service credit for business-related services was upheld, covering employee transport, photocopier, insurance, and sales promotion services.

Input service credit under Rule 2(l) of the CENVAT Credit Rules, 2004 was treated as admissible for employee transportation, taxi bills, photocopier services, maintenance, repair and servicing, insurance, and sales promotion services used by a manufacturer in the course of business. The Tribunal applied the binding High Court ruling that business-related services availed by a manufacturer fall within the scope of input service credit, and held that contrary Tribunal decisions cited by the Revenue were inapplicable because the issue was no longer res integra. The Revenue's challenge to the credit was rejected.

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Issues: Whether input service credit was admissible on transportation of employees, taxi bills, photocopier services, maintenance, repair and servicing, insurance, and sales promotion services used by a manufacturer in the course of business under Rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis: The Tribunal followed the High Court ruling that services availed by a manufacturer in the course of business fall within the scope of input service credit. In view of that binding precedent, the contrary Tribunal decisions relied upon by the Revenue were held to be inapplicable, and the issue was treated as no longer res integra.

Conclusion: The input service credit was held to be admissible and the Revenue's challenge to the credit was rejected.

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