2014 (4) TMI 644

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....lty of Rs. 2,000/- under Rule 15 (3) of Cenvat Credit Rules, 2004. The appellant against this order of the Commissioner filed this appeal challenging the denial of Cenvat credit amounting to Rs. 8,13,065 /-. As mentioned in Para 3 of the show cause notice dated 3.3.2010, the balance amount of Rs. 9,88,096/- demanded against from them and which was also confirmed, has not been disputed and this amount had been paid by reversing the Cenvat Credit even before the issue of the show cause notice. 2. Heard both the sides duly represented by Shri . Karan Sachdev learned Advocate and Shri S.K. Panda learned AR. 2.1 Shri Karan Sachdev , learned Advocate, for the appellant, pleaded that out of the disputed Cenvat credit demand of Rs.8,13,065/- an a....

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.... could be no malafide on their part. 2.2 Shri S.K. Panda, the learned Chief Departmental Representative, opposed the appellant's plea for allowing the appeal and reiterated the reasons adopted by the lower authorities for denial of credit. 3. I have carefully considered the submissions from both the sides and perused the records. 4. The main point of dispute is as to whether the service availed for transportation of the staff from the residence to the factory and back can be treated as covered by the definition of 'input service', as given in Rule 2 (1) of Cenvat Credit Rules, 2004. The Cenvat credit denied in respect of the service is Rs. 7 ,62,464 /-. On this issue, I find that the Tribunal in the case of Stanzen Toyotetsu India Pvt. L....

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....s connected with their business activity and has a direct nexus with the same inasmuch as it is in the welfare of the employees of the company and commitment towards the business target of the company. 6. I find that transportation of the employees of the companies has been held to be admissible Modvatable services by the Tribunal in the case of Stanzen Tototetsu India Pvt. Ltd. and said decision stand upheld by the Hon'ble Karnataka High Court decision as reported in 2011 (23) S.T.R. 444 ( Kar .) . On going through the said judgment of Hon'ble High Court, I find that it stand observed by them that definition of input service is wide enough and takes into its ambit the services connected of furtherance of business. Test is whether service ....