TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 303
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....upon the judgment of Hon'ble Punjab and Haryana High Court in appellant's own case as reported in CCE, Delhi-III Vs. Maruti Suzuki India Ltd. 2017 (49) S.T.R. 261 (P & H). He further stated that in the show cause notice dated 18.04.2012 the period involved is April 2011 to March 2012 but they have not availed Cenvat Credit on Rent-a-cab service after 01.04.2011 and for the credit availed after 01.04.2011 the provision of service has been completed before 01.04.2011. In this regard, he invited attention to paragraph 30 of the Commissioner's order and contended that their assertion has not been rebutted by the Commissioner in Paragraph 30.1. He further contended that in the cited judgment of Hon'ble Punjab and Haryana High Court, the Hon'ble High Court has held that credit on such service shall be available if the provision has been completed before 01.04.2011. 3. Ld. AR reiterated the findings in the order of the adjudicating authority. 4. Heard both the sides and perused the record. 5. In these appeals the issue in question is whether the input service credit is admissible for Mandap Keeper Service and Rent-a-cab service. I find that in appellants own case cited above the issue ....
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....urement of inputs, (v) Services used in relation to activities relating to business and outward transportation upto the place of removal. 19. The Court held that the expression business being an integrated/continuous activity, it could not be merely restricted to the manufacture of the product. In the absence of any qualifying words before the term 'activities in relation to business', it had to be construed widely and would cover all activities which were related to the functioning of the business. "25. The expression Business is an integrated/continuous activity and is not confined restricted to mere manufacture of the product. Therefore, activities in relation to business can cover all the activities that are related to the functioning of a business. The term business therefore, in our opinion cannot be given a restricted definition to say that business of a manufacturer is to manufacture final products only. In a case like the present, business of assessee being an integrated activity comprising of manufacture of concentrate, entering into franchise agreement with bottlers permitting use of brand name by bottlers promotion of brand name, etc. the expression will have to b....
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....x." 21. The Court held that it was not necessary that the contents of the advertisement must be that of the final product manufactured by the person advertising. As long as the manufacturer can demonstrate that the advertisement services availed have an effect or impact on the manufacture of the final product and establish the relationship between the input service and the manufacture of the final product, the manufacturer could avail the credit of the service tax paid by him. Once the cost incurred by the service has to be added to the cost, and is so assessed, it is a recognition by Revenue of the advertisement services having a connection with the manufacture of the final product. It was held that these tests would also apply in the case of sales promotion. 22. This judgment was followed in Commissioner of C. Ex. Nagpur v. Ultratech Cement Ltd., 2010 (260) E.L.T. 369 (Bom.) where the question was whether outdoor catering services are covered under the inclusive part of the definition of "input service". Answering in the affirmative it was held definition of "input service" is very wide and covers not only services, which are directly or indirectly used in or in relation to t....
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....ould be allowable. 35. The argument of the Revenue, that the expression "such as" in the definition of input service is exhaustive and is restricted to the services named therein, is also devoid of any merit, because, the substantive part of the definition of "input service" as well as the inclusive part of the definition of "input service" putport to cover not only services used prior to the manufacture of final products, subsequent to the manufacture of final products but also services relating to the business such as accounting, auditing.... etc. Thus, the definition of input service seeks to cover every conceivable service used in the business of manufacturing the final products. Moreover, the categories of services enumerated after the expression 'such as' in the definition of 'input service' do not relate to any particular class or category of services, but refer to variety of services used in the business of manufacturing the final products. There is, nothing in the definition of 'input service' to suggest that the Legislature intended to define that expression restrictively. Therefore, in the absence of any intention of the Legislature to restrict the definition of 'inp....
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....eing incurred by the respondent in order to promote the sales and for efficient running of the business for which they are entitled to avail Cenvat credit. 25. Further, as argued by the ld. Counsel for the respondent, as the cost of services of Rent-a-Cab and Mandap Keeper received, were included in the assessable value of the final product, on which excise duty is paid, which fact has not been disputed by the appellants, the respondent is entitled to avail the Cenvat credit on the service tax paid on such services on the ratio of the decision in Coca Cola India (supra). 26. The aforesaid view is further supported by decisions of different High Courts as also by different Benches of the Tribunal on these specific services.'' 6. I find that the period in the show cause notice dated 18.04.12 is mentioned as April 2011 to March 2012. I find that an amendment was made in the definition of input service in the year 2011 which was effective from 01.04.2011. By way of, the said amendment, Rent-a-cab service has been excluded from the definition of the input services. Ld. Advocate has argued that they had made a submission before the adjudicating authority that they have not availed ....
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....l that the transportation of the employees from their residence to the factory premises is related to their manufacturing activities and without coming to the factory, the production cannot be started. The provision of transportation facilities increases efficiency and increases the production capacity of the manufacturing unit itself. 28. In Commr. of C. Ex., Bangalore-III v. Stanzen Toyotetsu India (P) Ltd., 2011 (23) S.T.R. 444 (Kar.) the Karnataka High Court held that Rent-a-Cab service provided by the assessee to the workers to reach the factory premises constituted input service for availing Cenvat credit. It observed :- "10. As is clear from the definition any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products constitutes input service. Various services are set out in the definition expressly, as constituting input service. It also includes transportation of inputs or capital goods and outward transportation upto the place of removal. Therefore, the test is whether the service utilized by the assessee is for the manufacture of final product. Such service may be utilized directly or indirectly. Such may b....
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....e under Rule 2(l) of the Cenvat Credit Rules, 2004, though such service had no relation to the manufacturing process or any business activity of the assessees who were manufactures of metal sheets components for motor vehicles. They had availed Cenvat credit for service tax paid on civil work of constructing a plant/factory in the premises, namely for the manufacturing and for rental value of the immovable property leased by them on which the plant was erected. The Revenue contended that though the definition of input service was wide, it did not cover services that remotely or in a roundabout way contribute to the manufacture of the final product. It was contended that each and every connection, however remote and indirect, could not be contemplated by the definition of 'input service' and that a line had to be drawn somewhere to avoid undue extension of the phrases 'directly or indirectly' and 'in or in relation to' by adopting a common sense approach. Immovable property, being neither service nor goods, input credit thereof could not be taken. Although civil construction work is a taxable service under the Finance Act, 1994, it is basically civil in nature relatable to the immov....