CENVAT CREDIT ON RESEDENTIAL CONLOY & HOSPITAL FOR STAFF

[abbas mukhi]

SIR,

WHETHER CENVAT CREDIT FOR EXPENSES INCURRED FOR STAFF COLONY AND HOSPITAL IN STAFF COLONY IS ELIGIBLE ??

[KASTURI SETHI]

Pl. clarify the details of expenses incurred and Service Tax paid on which service. How you intend to utilize the cenvat credit whether as a manufacturer of excisable goods or provider of output service ?

[Ganeshan Kalyani]

Please elaborate your query for getting reply in all sense.

[DR.MARIAPPAN GOVINDARAJAN]

It is in practice when a query is given, whatever the facts known to the querist are also known to us. If the details of the facts of the case are not given how one could give advise or opinion.

[Rajagopalan Ranganathan]

Sir,

What are the services availed at staff colony and hospital in staff colony. As per rule 2 (l) (C) of Cenvat Credit rules, 2004 the definition of 'input service' excludes input services such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee.

The above clause (C) uses the words 'such as'. This word is used only to illustrate the scope It is not restrictive. There are number judgements/decisions of Courts/CESTAT explaining that 'such as' means it is only illustrative and not exhaustive [Goodyear India v. CC (1997 (95) ELT 450 (SC)] = 1997 (9) TMI 100 - Supreme Court of India. Therefore in my opinion service tax paid on any service extended by a manufacturer for the benefit of their employees is not eligible as credit.

[Ganeshan Kalyani]

Hope the queriest has got his answer from Ranganathan Sir's reply.

[KASTURI SETHI]

Without elaboration of query, Sh. Rajagopalan Ranganathan, Sir has given a clear-cut reply. It needs no further clarification. It is his art which is worth appreciation.

[Ganeshan Kalyani]

Absolutely Sir. Pats to him.