TaxTMI 
TaxTMI 
2022 (3) TMI 506
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....ppellant by The Internal Audit Group of the Department, it was noticed that the appellant had availed input Service Tax credit on various input services namely, Supply of Manpower for Outdoor Catering Services and Gardening Services and Rent-a-Cab Services for transportation of its employees and customers during the period from August 2008 to October 2010 and from November 2010 to August 2011, which according to the Department was not eligible for credit. 3. Separate Show Cause Notices were issued to the appellant proposing to disallow the credit and to recover the same along with interest and for imposing penalties. After due process of law, the Original Authority disallowed the credit and confirmed the demand along with interest and im....
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....unting, audition, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. 4.2 In regard to the issue of eligibility of credit on Supply of Manpower for Outdoor Catering Services and Rent-a-Cab Services, he submitted that for the period prior to 01.04.2011, the credit is eligible as per the definition. 4.3 For the period after 01.04.2011, the Learned Consultant for the appellant submitted that the credit would be eligible as these services are availed to comply with statutory requirements. The appellant has to maintain a green belt as per the Pollution Contro....
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....hen Outdoor Catering Services are availed as a statutory requirement for providing canteen facility to employees. The Tribunal in the said decisions had applied the decision of the Hon'ble Rajasthan High Court in M/s. Manglam Cement Ltd. (supra). 4.4 In regard to Rent-a-Cab Services, the Learned Consultant for the appellant submitted that even after 01.04.2011, the appellant would be eligible for credit. To support his argument, he relied upon the decision of the Tribunal in the case of M/s. Sundaram Clayton Ltd. v. Commissioner of Central Excise, Chennai-II reported in 2018 (7) T.M.I. 688 - CESTAT Chennai. He argued that the Revenue has not alleged in the Show Cause Notice that the vehicles have not been used as capital goods and theref....
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....after 01.04.2011, the definition of 'input service' specifically excludes such services and therefore, the authorities below have rightly disallowed the credit. She referred to the definition of 'input service' after the amendment with effect from 01.04.2011, which reads as under: "Input Service" means any service, (i) Used by a provider of output service for providing an output service; or (ii) Used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an off....
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....ital goods for the service provider. The appellant has not produced any document to establish the same and therefore, the credit has been rightly disallowed. 5.4 With regard to the issue of limitation, it is submitted by her that the extended period has been invoked only in the first Show Cause Notice wherein the period involved is prior to 01.04.2011 and that the second Show Cause Notice has been issued within the normal period. 6. Heard both sides. 7. At the outset it has to be stated that major part of the demand is for the period prior to 01.04.2011. Learned Consultant for the appellant has adverted to the definition of input service as it stood prior to 01.04.2011, in which the phrase "activities relating to business" is inclu....
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.... 8.2 I hold that the appellant is not eligible for credit on Rent-a-Cab Services after 01.04.2011. 9.1 The credit availed on supply of Manpower for Outdoor Catering Services has been disallowed for the period after 01.04.2011. The Hon'ble Supreme Court in the case of M/s. Toyota Kirloskar Motor Pvt. Ltd. (supra) has held that the said credit is not eligible post 01.04.2011. The relevant part of the order is reproduced as under: "2. The statutory provision - Rule 2(1) defining "Input Service" post 1-4-2011 is very clear and the out-door catering services when such services are used primarily for personal use or consumption of any employee is held to be excluded from the definition of "Input Service". 3. In that view of t....