TaxTMI 
TaxTMI 
2023 (9) TMI 65
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.... whether the credit of service tax paid on 'Bus Transportation Charges' being in the nature of Rent-a-cab service is admissible as input service under Rule 2(l), Cenvat Credit Rules, 2004 as amended or to put it more specific u/r. 2(l)(B) ibid? 3. The facts leading to the filing of this appeal are stated in brief as follows. The appellants are engaged in the manufacture of excisable goods. During the period in issue i.e. from April, 2015 to December, 2016 they hired bus on contract basis from a service provider viz. M/s. Kenstar Transport to pick up their employees from Kalyan station to their factory at Murbad and to drop them back after their duty gets over. The said service provider raised bill on the appellant which were paid by the ....
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.... tax paid under rent a cab service for hiring the bus transport is admissible even after the amendment has been made in Rule 2(l) ibid and in support of his submissions learned counsel placed reliance on the following decisions:- (i) M/s. Marvel Vinyls Ltd. CCE, Indore; 2016-TIOL-3071-Cestat-Delhi, (ii) CST, Pune vs. Nihilent Technologies; 2017-TIOL-2696- CESTAT-Mum., (iii) Modern Petrofils Dty Dev. Vs. CCE, Vadodara; 2017-TIOL-3896-CESTAT-AHM., (iv) Technocraft Industries India Ltd. vs. CCE, Thane; 2018-TIOL-1738-CESTATMUM., (v) Kansai Nerolac Paints Ltd. vs. CST, Mumbai; 2017- TIOL-4494-CESTAT-Mum., (vi) CCE & ST, Mangalore vs. Mangalore Refinery & Petrochemicals Ltd.; 2016(42) STR 6 (Kar.), (vii) M/s. Taj Sats Air Catering Ltd. vs. CCGST....
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....a manufacturer from their designated pick up points to their workplace, by Bus, so as to deny the benefit of Cenvat credit, to the Appellant/Manufacturer? (II) Whether the services provided by a Manufacturer of transportation of its employees, from their designated pick up points to their workplace, by Bus, would amount to a service for personal use or consumption of any of the employees? (III) Whether the activity of providing bus transport services to its employees, at the cost of the Manufacturer, to reach factory in time and the expenses incurred by the Manufacturer in providing such service, (which amount is taken into consideration, while determining the final price of the product) can be said to be a component leadi....
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....ice" in Rule 2(1) of the Cenvat Credit Rules, 2004 (for short, 'the said Rules') was amended. On that premise the Adjudicating Authority disallowed Cenvat credit on the ground that after the amendment, services used primarily for personal use or consumption of any employee stands excluded from the scope of "input service" and the same was thus ineligible for Cenvat credit. The Adjudicating Authority therefore by the order dated 28-12-2016 disallowed Cenvat credit for the period from 1-4-2011 to 31-12-2015 and ordered recovery of the same with interest under Rule 14 of the said Rules. Penalty was also imposed on the amount of said disallowed Cenvat credit under Rule 15 of the said Rules. This order was challenged before the Commissioner (App....
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.... In this regard, the Learned Counsel for the respondent is justified in placing reliance on the judgment of the Karnataka High Court in Toyota Kirloskar Motor Private Limited (supra) wherein food and beverages were provided by the appellant therein to its employees by engaging the services of an outdoor caterer. This was sought to be treated as "input service" since there was a statutory duty on the appellant to establish a canteen for its employees. Considering the effect of definition of "input service" after 1-4-2011 it was found that establishment of such canteen was primarily for personal use or consumption of the employees and after such amendment no Cenvat credit could be availed. This view has been upheld by the Hon'ble Supreme Co....
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....tion the amended definition of Rule 2(l) ibid and in particular Rule 2(l)(B) ibid it has been held by the Hon'ble High Court that the transportation of employees for reaching factory is not an activity which could be said to be part of manufacturing activity and it is merely for personal convenience of employees to enable them to reach the premises of the factory so as to participate in the manufacturing activity which is not permitted to be treated as 'input service' after 1.4.2011 in view of the amended provisions. In my view the decision of Hon'ble High Court is binding on the Tribunal particularly when it is on the same issue. Although it has been brought to my notice that for the earlier period i.e. 2012-13 the issue has been decided i....