TaxTMI 
TaxTMI 
2010 (4) TMI 742
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....d are Rs.2,07,085/- for catering service and Rs.1,41,532/- on tours and travel. The ld. DR argues that as per the definition of input services at Rule 2(l) of Cenvat Credit Rules any service will qualify as input service only if clear nexus between the service and the final products of the manufacturer is established. He also argues that it has to be clearly demonstrated that the cost of such service forms part of the cost of final product. He submits that the order of Commissioner (Appeals) does not deal with these issues. 2. In the case of tours and travels he argues that the service has no nexus with manufacturing activity. Such service could have been used for leisure of the employees or for any other purpose. It is pointed ou....
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....rvice in or in relation to the manufacture of final product. 4. In the case of tours and travels, his submission is that this service was utilised for bringing the employees from their residence to factory and back. This also is integrally connected with the manufacture of final product and therefore credit of tax paid on such service should be allowed. He relies on the decision of this Tribunal in the case of CCE, Vadodara Vs. Haldyn Glass Gujarat Ltd. reported in 2009 (240) ELT 729 and also the decision in CCE, Hyderabad Vs. Deloitte Tax Services India Pvt. Ltd. reported in 2008 (11) STR 266. 5. In reply to the submissions made on behalf of the Respondent, the ld. DR submits that the evidence now produced showing the c....
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....stage of reply to the Show Cause Notice or at the stage of first appeal that the service was used for bringing employees from their homes to factory and back and nothing else. The service could have been utilised for leisure, entertainment or for any personal use by any of the employees. The Advocate produces the copy of reply furnished by them in reply to the Show Cause Notice. Para B(6) is reproduced below :- Similarly, tour and travel services, for which the credit has been taken during the relevant period, were exclusively used in relation to the manufacture/ clearance of final products or in relation to the business of the notice. These services were not used for leisure or entertainment or for any personal use by any of the ....
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....redit Rules do not envisage tracing such trail. However, there is an issue discussed in para-39 of the order in the case of CCE, Nagpur Vs. Ultratech Cement Ltd. (supra). The issue is that if the cost of any facility is recovered from the worker credit cannot be allowed on such service. Here the Respondent makes it clear that the Bill raised by the caterer is towards the subsidy which the Appellant is providing for running the canteen. Service Tax is paid only on that value and credit is taken only on such Service Tax. Such value of service tax is not recovered from the workers. So the claim for Cenvat credit is not hit by this observation. 10. The ld. Advocate says that if the matter is remitted back for verification of his claim....