Input service credit for housekeeping and rent-a-cab services recognised where both supported manufacturing operations and factory compliance.

Housekeeping service used to maintain factory premises in a clean condition was treated as having a direct nexus with manufacture because it supported compliance with the cleanliness requirements under the Factories Act, so it qualified as input service. Rent-a-cab service for transporting employees to the factory was treated as a business essential for smooth manufacturing operations, not merely a welfare measure, so it also fell within the scope of input service. Cenvat credit on both services was held admissible, and the Revenue's challenge failed.

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Issues: Whether cenvat credit was admissible on housekeeping and rent-a-cab services as input services.

Analysis: Housekeeping service was used for maintaining the factory premises in a clean condition, which was necessary for compliance with the statutory requirement of cleanliness under the Factories Act and had a direct nexus with manufacture. Rent-a-cab service for transporting employees to the factory was treated as a business essential for smooth manufacturing operations, and not merely as a welfare measure. On these facts, the disputed services were held to fall within the scope of input service.

Conclusion: Cenvat credit on both services was held admissible, and the Revenue's challenge failed.

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