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2013 (3) TMI 42 - AT - Central ExciseCENVAT credit on rent-a-cab service and service of air travel ticket agents - Held that:- The manufacturer is consuming the rent a cab and air travel services for carrying the employees/officials to various zonal offices of the railways and to arrange supply of materials by the suppliers/sub-contractors for the official use as distinct from the conveyance or perquisite account for the employees. Therefore, it can be said that the rent a cab services / tour operator and air travel services are used by the manufacturer and cannot be treated as perquisites for the employees. The other part of the test is whether the activity of business which is treated as a cost to the company is also used in relation or in relation to the manufacture of the final product. As find from the submissions made that the rent a cab and air travel agent s services are hired by the company for specific purposes of use by the officers of the company in coordinating vendors of inputs, sub-contractors engaged in the manufacture and therefore, all these purposes, are closely related to manufacture of the final product. The issue of eligibility for CENVAT credit on rent-a-cab service used for bringing their employees from residence to factory and back is already decided by the Hon ble Karnataka High Court in the case of CCE, Bangalore Vs. Stanzen Toyotetsu India (P) Ltd. (2011 (4) TMI 201 - KARNATAKA HIGH COURT) & case of service of air travel agents are on much better footing because these activities are directly in relation to marketing of their finished goods. Hence, no reason to deny CENVAT credit on such services. - in favour of assessee.
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