2016 (7) TMI 351

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....t credit of service tax paid in respect of housekeeping services and supply of drivers under the man power supply agency service. The period of dispute involved in this appeal is Jan 2008 to October 2012. A show cause notice was issued to them alleging that the input service amounting to Rs. 7,27,927/- availed by the appellant is ineligible. On adjudication, the demand was confirmed along with interest. Penalty under Section 11AC of the Central Excise Act has also been imposed. On appeal, the Commissioner (Appeals) upheld the OIO and rejected the appeal. Hence the present appeal. 2. The learned counsel appearing on behalf of the appellant-company submits that with regard to the period prior to 1.4.2011, the issue is no longer res integra a....

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....f record rooms etc., within the factory premises and these services in no way are related to the manufacturing activities. 4. Heard both sides. I find that in respect of housekeeping services, Section 11 of the Factories Act, 1948 casts the responsibility on the appellant to keep its factory clean as a statutory obligation and accordingly these services are used for cleaning and maintaining the factory. When the manufacturer's statutory obligation is carried out using the taxable service cenvat credit may not be disallowed. This view is supported by the following Tribunal/High Court's decisions :-  (1) Delphi Automotive Systems Pvt. Ltd. Vs CCE Noida- 2015 (315) ELT 325 (Tri.-Del.)  (2) CCE & ST, LTU, Chennai Vs Rane ....

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....that the notice alleges that this service is utilized only for picking up and dropping the employees and hence not eligible for credit. The Impugned Order denies such credit on the ground that the drivers' service is utilized for conveyance of staff only and not for operating fork lift to move the raw materials. In this regard, the Appellant has argued that the job of drivers is to drive the company vehicles like fork lift mainly to move the sheet metal, tubes etc. from stores to production department and also for loading and unloading the materials for production. The Appellant contends that this activity is related to their business and hence credit is eligible to them. In this regard, I find that the driver's service generally in....