Cenvat credit on business-related services upheld under the wider pre-amendment input service definition.

Cenvat credit was admissible on rent-a-cab, courier, mandap keeper and catering services used in connection with business operations because the relevant period preceded the restrictive amendment to the definition of input service. The services were used for employee transport, canteen facilities, company programmes and delivery of goods to buyers, all of which fell within the then wider ambit of activities relating to business. Courier services used to dispatch goods up to the buyer's premises were also covered for that period. The denial of credit was therefore unsustainable, and the disallowance was set aside.

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Issues: Whether Cenvat credit was admissible on rent-a-cab, courier, mandap keeper and catering services used in relation to the assessee's business operations.

Analysis: The period involved was prior to the restrictive amendment to the definition of input service. The services in question were used for employee transport, canteen facilities, conduct of company programmes and dispatch of goods to buyers. In the relevant period, the definition of input service had a wide ambit and covered activities relating to business. Courier services used for delivery of goods up to the buyer's premises were also covered for the period prior to the amendment substituting the expression relating to the place of removal. On that basis, the denial of credit on these services was held to be unsustainable.

Conclusion: The credit on the impugned input services was admissible and the disallowance was set aside.

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