Input service nexus for cenvat credit: housekeeping, transport, canteen, design and advertising services were treated as admissible.

Cenvat credit was treated as admissible on housekeeping, rent-a-cab, outdoor catering, design, advertising and manpower recruitment services where the services were linked to factory operations or statutory compliance. Housekeeping was accepted as necessary for maintaining cleanliness in the factory, rent-a-cab for transporting workers, and outdoor catering for the worker canteen. Design and advertising services were also considered covered by the definition of input service. The disputed credit was therefore held admissible on all the services in question, with consequential relief following.

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Issues: Whether cenvat credit was admissible on housekeeping, rent-a-cab, outdoor catering, design, advertising and manpower recruitment services as input services.

Analysis: Housekeeping service was used to keep the factory neat and clean in compliance with the statutory requirement of maintaining cleanliness in the factory. Such service was treated as essential for manufacturing operations and within the ambit of input service. Rent-a-cab service used for transporting workers to and from the factory was held admissible on the strength of precedent. Outdoor catering service used for providing canteen to workers was also held admissible. Design and advertising services were found to be covered by the definition of input service.

Conclusion: The disputed cenvat credit was admissible on all the services in question.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: Services availed for statutory compliance or having a sufficient nexus with manufacture and factory operations qualify as input services for cenvat credit.

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