TaxTMI 
TaxTMI 
2022 (3) TMI 506
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.... 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 imposed penalty. Aggrieved by such order, the a....
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....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 Control Board norms, for which the appellant has availed Manpower for Gardening Servi....
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....ing 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 therefore, the exclusion does not apply. 4.5 It is submitted by the Learned Consultant....
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....horities 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 office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procureme....
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....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 included. In various decisions of the Tribunal as well as several High Courts, it has been held that the said definition has a very wide ambit and it would include almost all....
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....s 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 the matter, it cannot be said that the High Court has committed any error in denying the input tax credit and holding that such a service is excluded from input service. 4. We are in compl....