2011 (6) TMI 309

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y is not provided, it will be difficult for them to get employees. He also submitted that their Head Office is situated in city and the employees who are working there are not provided any transport facility. Therefore, he submits that the transport facility provided by them cannot be considered as a welfare measure but an activity relating to business and therefore appellant is eligible for the benefit of cenvat credit of service tax paid by them. Further, he also submitted that in the Budget of 2011, the cenvat credit of service tax paid on employees welfare measure has been specifically excluded from the definition of input service which would go to show that for the period prior to 01/04/2011 such benefit would available to them. 3. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....conclusion is with reference to the facts involved in Ultratech Cement Ltd. and not a legal proposition laid down. In fact in the subsequent paragraphs, the Hon'ble High Court discussed the decision of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. which was relied upon by the Revenue in the case to argue that there should be nexus between the manufacture and the services. In para 34 and 35 of the decision, Hon'ble High Court held as under:-     "34. Therefore, the definition of input service read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rict the definition of 'input service' to any particular class or category of services used in the business, it would be reasonable to construe that the expression 'such as' in the inclusive part of the definition of input service is only illustrative and not exhaustive. Accordingly, we hold that all services used in relation to the business of manufacturing the final product are covered under the definition of 'input service' and in the present case, the outdoor catering services being integrally connected with the business of the manufacture of cement, credit of service tax paid out on catering services has been rightly allowed by the Tribunal." 5. The ratio of the decision of the Hon'ble High Court comes out in para 35 wherein they ha....