2015 (9) TMI 942

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he case are that appellant is a manufacturer of cement and are maintaining canteen in their factory as per statutory requirement of Factories Act. During the course of their business of manufacturing of cement, the appellant availed apart from other services, services of outdoor catering, rent-a- cab, auction, club and association, and outward transportation services. Input services credit on these services was sought to be denied on the premise that they do not qualify as input service credit as per Rule 2(l) of Cenvat Credit Rules, 2004. Proceedings were initiated against the appellant and impugned orders were passed to deny the Cenvat credit along with interest and penalty also stand imposed on the appellant. Aggrieved from the said orde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....msp;Auction service: It is the submission of the appellant that the auction were held for auction of waste and scrap arising during the course of manufacturing in their factory. Therefore auction services are related to business of manufacturing cement, therefore they are entitled to take Cenvat credit. (D) Club and Association services: It is the contention of the appellant that club and association services have been used by the employees or the officials of the appellants outside the city in the course of their business. Therefore, they are entitled to take Cenvat credit. (E) Outward goods transport services: It is the contention of the appellant that said service has been used by them for transportation of finished goods up ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t same are not in relation to the business of manufacture. Therefore, they are not entitled to take Cenvat credit. To deny the Cenvat credit on outward goods transportation, it is the submission of learned AR that appellant is required to qualify three conditions of C.B.E.&C. Circular No. 97/8/07 dated 23-8-2007 that the ownership of the goods remained with the appellant till delivery and the risk and cost is borne by the appellant and fee cost of transportation is included in the assessable value as appellant has failed to satisfy the condition that goods remained in the ownership of the appellant till delivery and risk and cost are borne by the appellant, therefore, they are not entitled to take Cenvat credit. In these terms, impugned ord....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r not. I have seen that rent-a-cab service for transportation of the passengers from residence to factory or vice versa is an integral part of the manufacturing activity of the appellant and therefore, I hold that appellant is entitled to take Cenvat credit on these services. Further, I find that in the impugned order or the show cause notice, the allegation levelled against the appellant is that appellant has not segregating the amount of rent-a-cab pertaining to the transportation of the employees from residence to factory or vice versa and rent-a-cab services used by them in the course of their business. I therefore, hold that the issue was not before the lower authorities to find out the quantum of recovery made by the appellant from th....