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2017 (2) TMI 841
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....availed benefit of Cenvat credit on inputs/capital goods and input services in their activity of business of manufacture and clearance of excisable motor vehicles. Appellants were issued show cause notice dated 20-10-2008 by the Additional Commissioner of Central Excise alleging that they are not eligible for input service tax credit availed on Garden Maintenance, Golf Club Subscription, Cargo charges for expatriation and repatriation of individuals, Shamiana service for Japanese harvesting festival, Brokerage charges for residential premises of the employees. The reason for denial of Cenvat credit on the aforesaid input services is that the impugned services are not covered by the definition of 'input service' under Rule 2(l) of Cenvat Cre....
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....14 (Kar.) (ii) CCE v. Rane TRW Steering Systems Ltd. - 2015 (39) S.T.R. 13 (Mad.) (iii) Gateway Terminals (I) Pvt. Ltd. v. CCE - 2015 (39) S.T.R. 1027 (Tri.-Mum.) (iv) Cargill India Pvt. Ltd. v. CCE - 2015 (38) S.T.R. 587 (Tri.-Bang.) (v) CCE, v. Lupin Ltd. - 2012 (28) S.T.R. 291 (Tri.-Mum.) = 2012 (285) E.L.T. 221 (Tri.) (vi) ISMT Ltd. v. CCE - 2010 (20) S.T.R. 68 (Tri.-Mum.) (vii) Balakrishna Industries Ltd. v. CCE - 2010 (18) S.T.R. 600 (Tri.-Mum.) = 2010 (254) E.L.T. 301 (Tri.-Mum.) (viii) HEG Ltd. v. CCE - 2010 (17) S.T.R. 178 (Tri.-Del.) (ix) Bal Pharma Ltd. v. CCE - 2014 (34) S.T.R. 752 (Tri.-Bang.) (x) &nbs....
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....oduct, the service would not qualify to be an input service under Rule 2(l) of the 2004 Rules." 4. I have heard the learned counsel for the parties and perused the records. The only issue in the present appeal is whether the appellants are entitled to input service credit on the following services namely Garden Maintenance service, Brokerage Charges paid by the company for getting residential garden for Japanese employees in Bangalore, Golf Membership fee, Cargo Handling Charges for Japanese expatriation and repatriation and Pandal and Shamiana charges etc. At this stage, it is pertinent to analyze the definition of 'input service' as contained in Rule 2(l) of Cenvat Credit Rules, 2004 which is reproduced herein below : "Rule 2(l....
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.... Karnataka has observed that the definition of 'input service' is too broad and it is to discharge a statutory obligation when the employer spends money to maintain their factory premises in a eco-friendly manner, certainly the tax paid on such services would form part of the final product and similarly the Madras High Court in the case of CCE v. Rane TRW Steering Systems Ltd. cited supra has held that House Keeping and Garden Services where an employer spends money to maintain their factory premises in an eco-friendly manner, the tax paid on such services would form part of the cost of final products and the same would fall within the ambit of 'input services' and similarly Gateway Terminals (I) Pvt. Ltd. v. CCE, Cargill India Pvt. Ltd. v.....