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2012 (12) TMI 228 - AT - Central ExciseCenvat Credit - rent-a-cab services - transportation of workers/employees from their factory to homes and back - for sending sick employees to hospital - for transporting children of employees/workers to school/tuition centres and back - Input Service - Cenvat credit demand, Interest and Penalty - nexus with manufacture of Goods - held that:- service of rent-a-cab service availed for bringing employees to the factory and dropping them back home is covered by the definition of Input Service and appellant had rightly claimed Cenvat Credit. Decision in C.C.E., Bangalore vs. Stanzen Toyotetsu India (P) Ltd. [2011 (4) TMI 201 - KARNATAKA HIGH COURT] and C.C.E., Bangalore III vs. T.G. Kirloska Automoiive Pvt. Ltd [2011 (4) TMI 206 - KARNATAKA HIGH COURT]; that also judgment of Hon’ble Punjab & Haryana High Court in the case of C.C.E., Chandigarh I vs. M/s Federal Mogul Goetze (India) Ltd [2011 (9) TMI 120 - PUNJAB AND HARYANA HIGH COURT] is followed. cenvat credit in relation to the ambulance services - held that:- Factory owner is under legal obligation to ensure basic medical facility for the welfare of the employees who may suffer from injury in accident or may suddenly fall sick. In the instant case, hiring of ambulance for carrying sick employees to the hospital for treatment is extension of the aforesaid legal obligation of the assessee - health of the workers in a factory has direct relation to its output - service tax paid on ambulance service i.e rent-a-cab service for ambulance, by the appellant in respect of welfare of employees has nexus with the production of final product - Com has fallen in error in disallowing aforesaid cenvat credit to the appellant. Cenvat credit for transportation of employees children to schools/tuition centres - is a welfare activity which is not covered by the definition of Input Service - cenvat credit demand of Rs.62,435/- is upheld along with interest, rest of cenvat credit demand is set aside. Since the issue involved in this appeal relates to interpretation of the provisions of Cenvat Credit Rules, penalty of Rs.10,000/- imposed on the appellant is also waived.
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