2012 (12) TMI 228

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and back, credit of Rs.48,617/- in respect of rent-a-cab services for sending sick employees to hospital and besides this, cenvat credit of Rs.62,435/- in respect of rent-a-cab service for transporting children of employees/workers to school/tuition centres and back. 2. The Department being of the view that appellant are not eligible for cenvat credit in respect of rent-a-cab services availed for the above three purposes, issued a show cause notice dated 4.9.2009 for recovery of allegedly wrongly taken credit amounting to Rs.65,58,369/- during the period from July 2004 to January, 2009 along with interest and also for imposition of penalty on the appellant. This show cause notice was adjudicated by the Commissioner vide order -in - origina....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....red by the definition of Input Service ; that as regards hiring of vehicle for transportation of workers children from their homes to the schools/tuitions centre and dropping them back, these services are also covered by the definition of Input Service as the appellant s factory and workers residential colony are located in far-off area where no conveyance is available. He, therefore, pleaded that impugned order is not sustainable. 5. Shri Sanjay Jain, ld. A.R. for Revenue, defended the impugned order by reiterating the findings of the Commissioner in it and emphasised that rent-a-cab service availed by the appellant for bringing employees from their residence to the factory and dropping them back, transportation of the sick employees to t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cilities besides nursing treatment etc. It is obvious that every factory owner is under legal obligation to ensure basic medical facility for the welfare of the employees who may suffer from injury in accident or may suddenly fall sick. In the instant case, hiring of ambulance for carrying sick employees to the hospital for treatment is extension of the aforesaid legal obligation of the assessee. Otherwise also, health of the workers in a factory has direct relation to its output and therefore, in our considered view, the service tax paid on ambulance service i.e rent-a-cab service for ambulance, by the appellant in respect of welfare of employees has nexus with the production of final product. Accordingly, we are of the view that the Commi....