2018 (2) TMI 778

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....r Dubey (Supdt.) AR, for Respondent Per: Anil Choudhary The issue in this appeal is whether Cenvat credit have been rightly denied on the transportation expenses of employees/workers engaged, through the manpower service provider. 2. The appellant is a manufacturer of Refrigeration Parts, Plastic Cap, Motor Vehicle Parts, Articles for Cap, Scrap, etc. The appellant entered into agreement with M....

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....vice tax as per the rate prescribed from time to time in both bills. It further provided that the contractor will be entitled to a commission of 8% on the total disbursement made to the labour supplied by them. The said commission shall be payable to the contractors every month on their bills and they will also be entitled to a commission of 4% on the total expenses made on transportation of manpo....

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....es Total Add Service Tax. Grand total (b) Transport charges for the month, Add service charges 4% sub-total Add service tax. Grand total. 6. The Learned counsel urges that for the sake of control and convenience, the appellant assessee have directed the service provider to raise separate bills for the wages and the transport charges for the workers from the supply centre or office of the ....

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....d on the impugned order. 8. Having considered the rival contentions I find that the transport charges raised by the service provider for manpower service is related to the transport/conveyance expenses of the workers provided to the appellant manufacturer. Such transport expenses are incidental to providing of manpower service. Accordingly I hold that the transport expenses incurred are nothing b....