TaxTMI 
TaxTMI 
2026 (6) TMI 11
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....sekeeping service. The Department issued a Show Cause Notice dated 24.05.2013 alleging that the aforementioned services do not qualify as input services for provision of output service and demanding an amount of ineligible Cenvat credit taken of Rs.12,14,020/- along with applicable interest and proposing to impose penalty under Rules 15(1) of Cenvat credit 2004 (CCR). After due process of law, the Adjudicating Authority vide the OIO dated 30.06.2014 confirmed the duty demand to the extent of Rs.11,69,677/- involved on rent a cab service and housekeeping service while allowing the Cenvat credit pertaining to the annual maintenance contract for air conditioners, and also imposed a penalty of Rs.1,00,000/- under Rule 15 of the CCR. Aggrieved, the appellant preferred an appeal before the Commissioner of Central Excise (Appeals-II). The Appellate Authority however, rejected the appeal and upheld the order of the adjudicator in toto. Hence, this appeal. 3. Ms. G. Vardini Karthik, Ld. Advocate, appearing for the appellant contended that the housekeeping services are in the nature of cleaning of tables, chairs, computers, printers, file racks on a daily basis; cleaning of walls, ceiling....
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.... clearance of final products upto 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 upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes, (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of Section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for- (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B)....
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....e being provided in cases when the credit on the motor vehicle is available as capital goods. The service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, is available when used by a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such a person; or an insurance company in respect of a motor vehicle insured or reinsured by such a person. However, the exclusions in sub-clause (C) are only when such services are used primarily for personal use or consumption of any employee. 9. As regards the first part/main part of the definition, it is pertinent to note the difference in the language employed by the legislature. With respect to output service, it is provided that the input service should be used for providing the output service. The specific reference to taxable service has been removed and it is provided that with respect to output service, the input service should be used for providing the output service. The rationale appears to be that the charging section 66B brought in by Finance Act 2012 now specifies that service tax at the rate specified therein would ....
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....maceuticals Ltd. & Ors. v. Employees' State Insurance Corporation & Ors. - (1997) 9 SCC 71, T.N. Kalyana Mandapam Assn. v. Union of India & Ors. - (2004) 5 SCC 632 = 2004 (167) E.L.T. 3 (S.C.) = 2006 (3) S.T.R. 260 (S.C.), It is also well settled that in order to determine whether the word "includes" has that enlarging effect, regard must be had to the context in which the said word appears. (See: The South Gujarat Roofing Tiles Manufacturers Association & Anr. v. The State of Gujarat & Anr. - (1976) 4 SCC 601, R.D. Goyal & Anr. v. Reliance Industries Ltd. - (2003) 1 SCC 81, and Philips Medical Systems (Cleveland) Inc. v. Indian MRI Diagnostic and Research Limited & Anr. - (2008) 10 SCC 227." 11. A similar view is forthcoming in the decision in Commercial Taxation Officer, Udaipur v. Rajasthan Tax Chem Ltd, 2007 (209) E.L.T. 165 (S.C.), wherein the Apex Court has laid down as follows: "The word includes gives a wider meaning to the words or phrases in the Statute. The word includes is usually used in the interpretation clause in order to enlarge the meaning of the words in the Statute. When the word include is used in the words or phrases, it must be construed as compre....
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....ent entered into by the Appellant with the service provider indicates that whilst it covers 25 services, 23 works are general conservancy services of cleaning and upkeep of the premises of the appellant and two items of the agreed work provide for cleaning of exchange equipment such as battery, power plant, engine alternator, compute peripherals, fire extinguishers and cleaning the telecom instruments. The Adjudicating Authority has therefore proceeded to reject the claim of input credit on the finding that the impugned services are predominantly connected to general conservancy work. The appellate authority in the impugned order has noticed that out of the 25 services, 23 relate to general conservancy work and that essentially being housekeeping service is not covered under the aforesaid definition of Rule 2(l). The impugned order also while stating that the inclusive part of the definition mentions activities relating to business, yet has held that it however, cannot be stretched too far to include in its ambit, services such as the one stated above and hence does not merit coverage under the inclusive definition and therefore housekeeping service cannot be treated as "input serv....