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2018 (5) TMI 1357 - CESTAT CHENNAICENVAT credit - input services - rent-a-cab service - Department was of the view that these services were neither used directly nor indirectly nor in relation to the manufacture and therefore the said services do not qualify as input services for availing Cenvat credit of service tax paid on the said services - whether the appellants are eligible for Cenvat credit on ‘Rent-a-Cab service? - Held that: - the Hon’ble Supreme court in the case of M/s. Maruti Suzuki Ltd. Vs. CCE, Delhi [2009 (8) TMI 14 - SUPREME COURT] has held that crucial requirement for availment of input credit of all goods is ‘used in or in relation to the manufacture of final products’ - In the case on hand, admittedly, the Revenue has not negatived the plea of the appellant that the service availed of Rent-a-cab service had been used for official purposes by the employees of the appellant, for or during the business. There is also no dispute with regard to the period involved in the present case that it was prior to 01.04.2011. The Revenue has lost sight of the fact that the said service was provided by the appellant to its workers to reach the factory premises in time which has a direct bearing on the manufacturing activity/production which, otherwise, the employees would have claimed conveyance allowance - the appellant is eligible to avail Cenvat credit of rent-a-cab service up to 01.04.2011. Appeal allowed - decided in favor of appellant.
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