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2014 (10) TMI 90 - AT - Central ExciseCENVAT Credit - input services - manpower supply agent service - Service of first-aid facilities to the workers - Nexus with manufacturing activity - Held that:- Providing of first-aid facilities to the workers, whether in the factory or in mines is the requirement of the Factories Act, 1948 and also the Mines Act, 1952 and if a manufacturer wants to carry on manufacturing activities, he has to comply with the provisions of the Factories Act and the Mines Act. In view of this, the availment of service for maintenance of the first-aid facilities for the workers has to be treated as the service used in or in realtion to the manufacture of final products. I find that the same view has been taken by the Hon’ble Gujarat High Court in the case of Ferromatik Milacron India Ltd. (2010 (4) TMI 649 - GUJARAT HIGH COURT). Under the provisions of Section 46 of the Factories Act, it is mandatory for the employer to provide canteen services to the staff. Thus, provision of canteen services is a statutory requirement. Provision of canteen services being indispensable, it is incumbent on a manufacturer of goods, to provide the same if he desires to run his factory. In view of the definition of ‘input service’ which means any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, the input service does not have to used directly in the manufacture of final products, it may be a service which is only indirectly used in relation to the manufacture of final products. In the circumstances, canteen services which are indispensable in relation to manufacture of the final products would certainly fall within the ambit of ‘input service’ as defined under the Rules. impugned order denying the cenvat credit is not sustainable - Decided in favour of assessee.
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