2018 (5) TMI 1357

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....at credit of service tax paid on various services for the period from June 2011 to May 2012. The department was of the view that these services were neither used directly nor indirectly nor in relation to the manufacture and therefore the said services do not qualify as input services for availing Cenvat credit of service tax paid on the said services. Hence a SCN dated 05.07.2012 was issued proposing recovery of service tax credit availed during the period from June 2011 to May 2012 along with interest and imposition of penalty under Rule 15(1) of the Cenvat Credit Rules, 2004. On adjudication, the adjudicating authority allowed the credit taken on various services except 'Rent-a-Cab' service to the tune of Rs. 1,19,027/-, charged interest....

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....(20)STR 312 5. CCE, Visakhapatnam Vs. AP Paper Mills Ltd. 2011 (22) STR 126 (Tri.-Bang.) 6. CCE, Visakhapatnam Vs. AP Paper Mills Ltd. 2010 (254) ELT 354 (Tri.-Bang.) 7. CCE Nagpur Vs. Ultratech Cement Ltd. 2010 (20) STR 577 (Bom.) 8. Integra Software services Pvt. Ltd.Vs. CCE 2017 (48) STR 137 (Tri-Chen.) 9. CCE, Bangalore Vs. Interplex Electronics (I) Ltd 2015 (39) STR 578 (Kar.) 10. Source HOV India Pvt.Ltd. Vs. CST, Chen. 2016 (45) STR 233 (Tri.-Chen. 11. Sundaram Clayton Ltd. Vs. CCE, Chen. 2016 (42) STR 741 (Tri.-Chen.) 12. Wipro Ltd. Vs. CCE, Pondicherry 2018 (4) TMI 967 -CESTAT-Chennai He further submitted that since the appellants are eligible to avail cenva....

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....activity, credit of input tax cannot be denied since rent a cab service is essential for the movement of the employees of the factory and to carry out business activity." 5.2 Further, the Hon'ble High Court of Karnataka in the case of CCE Vs. Stanzen Toyotetsu India Pvt. Ltd. - 2011 (23) STR 444 (Kar.), while considering a similar issue has held as under:- "13. Rent-a-Cab service is provided by the assessee to these workers to reach the factory premises in time which has a direct bearing on the manufacturing activity. In fact the employee is also entitled to conveyance allowance. It also would form part of a condition of service and the amounts spent on the conveyance of the employees is also a factor which will be taken into co....