2024 (10) TMI 1255

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....er Chapter 28 of the CETA. It was noticed that during the period from April 2011 to March 2013, the appellant had availed service tax credit of Rs.87,054/- on various services like housekeeping, medical centre service and membership subscription of club. Since it appeared that the services were not eligible capital services, a Show Cause Notice dated 24.10.2013 was issued to the appellant proposing to deny the above-mentioned input service credit. After due process of law, the learned Original Authority confirmed an amount of Rs.33,267/- alone under Rule 14 of the CENVAT Credit Rules, 2004 (CCR 2004) involved on medical centre service and membership subscription of club and allowed the balance credit on other services. He also imposed a pen....

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....dical staff, with an ambulance for 24 Hrs. Further, Section 38 of the Employees' State Insurance Act, 1948, states that all employees in factories and or establishments to which this Act applies shall be safeguarded in the manner provided. Therefore, the medical-aid centre provided by the appellant to their employees is an activity in relation to manufacture of finished goods and hence covered under the definition of input service because, the appellant cannot engage in manufacture without complying with these laws. She placed reliance in this regard on the judgments in Jaypee Sidhi Cement Plant Vs. CCE Bhopal [2015 (37) S.T.R. 397 (Tri. Del.)]; Kakinada Seaports Ltd., Vs. CCE [2015 (40) S.T.R. 509 (Tri. Ban.] and M/S Gujarat State Fertiliz....

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.... books of accounts of the appellant and was not suppressed. Further they had disclosed the credit availed to the department and the same was also reflected in the ER-1 returns filed by them. Since there is no provision in the said return to show the description of input services with respect to which the credit was availed, mere failure to disclose that which is not required by the returns cannot be construed as suppression of facts. The Ld. Advocate submitted that this itself proves there is no suppression or intent to avail ineligible credit as alleged. She placed reliance on the following cases: • Moderin Petrofils Vs. CCE, Vadodara., 2010 (20) STR 627 (Tri. Ahmd); • CCE, Jaipur I Vs. Pushpa Enterprises., 2011 (....

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....s mandatory services availed by the appellant under various Acts or which are mandatory for manufacture of goods, would hence continue to be eligible for being taken as credit, as without availing the said services, the goods cannot be manufactured, without facing penal action or other disruptions. So they are integrally connected with the ultimate production of goods/ chemicals manufactured in their factory. Moreover, services availed are not used primarily for private use or consumption of any employee and the duty paid forms a part of the final price of the product on which tax is paid. 6. I find that similar issues came to be examined by this Tribunal; (a) In the Kakinada Seaports Ltd., Vs. CCE [2015 (40) S.T.R. 509 (Tri. Ban.], t....