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2014 (4) TMI 644 - AT - Central ExciseDuty demand - CENVAT Credit - Credit reversed before issuance of SCN - Whether the service availed for transportation of the staff from the residence to the factory and back can be treated as covered by the definition of 'input service', as given in Rule 2 (1) of Cenvat Credit Rules, 2004 - Held that:- transportation of the employees of the companies has been held to be admissible Modvatable services by the Tribunal in the case of Stanzen Tototetsu India Pvt. Ltd. and said decision stand upheld by the Hon'ble Karnataka High Court decision as reported in [2011 (4) TMI 201 - KARNATAKA HIGH COURT] . On going through the said judgment of Hon'ble High Court, I find that it stand observed by them that definition of input service is wide enough and takes into its ambit the services connected of furtherance of business. Test is whether service utilized is for manufacture of final product directly or indirectly or used in relation to activities relating to business. If any of these two tests are satisfied, service is well within the definition of input service and the manufacturer would be entitle to avail the credit. As such, by referring to CAS-4 standards relating to cost of the final product, it stand held by the Hon'ble High Court that transportation of the employees service is an admissible modvatable service - even services used for maintenance and repair of the colony are cenvatable input services. If that be so, transportation provided for school children would also get covered in the definition of "input services". - Decided in favour of assessee.
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