2016 (1) TMI 481

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....007 on (i) repair charges; (ii) repair of company vehicles; (iii) rent a cab services used for transportation of staff/guests; (iv) credit taken on invoices which did not bear Sl.No. and registration certificate etc.; pursuant to which, a show cause notice dated 23.08.2007 was issued to the respondent demanding recovery of credit availed on the said services as irregular. After consideration of the objections filed by the respondent, the adjudicating authority disallowed the credit taken on repair of company vehicles and rent a cab services thereby demanding Rs. 13,19,362/- for availing the input service tax wrongly and imposed equal penalty along with interest. Being aggrieved by the said order, the respondent preferred an appeal before th....

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.... fact that the appeal was preferred by the appellant before the CESTAT challenging the decision of the Appellate Authority whereby CENVAT Credit has been allowed in respect of service tax paid for services of repair, maintenance of company vehicles and tax paid on rent-a-cab services. The issue regarding rent-a-cab services is raised and considered in extenso by the Division Bench of this Court in Stanzen Toyotetsu India (P) Ltd. (supra) wherein this Court has clearly held that the rent-a-cab services provided by the assessee to the workers to reach the factory premises well in time, would have a direct bearing on the manufacturing activity. This is considered to be a basic necessity to ensure that the work force comes in time at the work p....