CENVAT credit on employee-related business services remains available where services support manufacturing and lack evidence of personal consumption.

CENVAT credit on staff health insurance, club membership, rent-a-cab and travel agent services was considered admissible for periods before and after 1 April 2011. Before the amendment, the services qualified as activities relating to business because they were connected with manufacturing operations, accounted for in business expenditure, and reflected in the assessable value of final products. After the amendment, credit remained available where services were not used for employees' personal consumption. As no evidence showed personal use and the services were availed in the course of business, the credit was admissible for both periods.

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Issues: Whether CENVAT credit was admissible on staff health insurance, club membership, rent-a-cab and travel agent services used in connection with the manufacture of excisable goods for the periods before and after 1 April 2011.

Analysis: For the pre-amendment period, the services were connected with business activities, their expenditure was recorded in the accounts, and the assessable value of the final products was determined taking such expenditure into account. They consequently fell within the expression activities relating to business in the inclusive part of the definition of input service. For the post-amendment period, credit remained available where the services were not meant for employees' personal use. There was no material establishing personal consumption; the services were availed for employees in the course of business.

Conclusion: CENVAT credit on the disputed services was admissible to the assessee for both periods.

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