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2017 (2) TMI 841 - AT - Service TaxCENVAT credit - Garden Maintenance service - Brokerage Charges paid by the company for getting residential garden for Japanese employees in Bangalore - Golf Membership fee - Cargo Handling Charges for Japanese expatriation and repatriation - Pandal and Shamiana charges - denial on the ground that the impugned services are not covered by the definition of ‘input service’ u/r 2(l) of CCR, 2004 as the same is not directly or indirectly in or in relation to manufacture and clearance of goods - Held that: - any service which is used by the manufacturer whether directly or indirectly, in or in relation to manufacture of final products and clearance of final products up to the place of removal fall in the definition of ‘input service’ - the Madras High Court in the case of CCE v. Rane TRW Steering Systems Ltd. [2015 (4) TMI 704 - MADRAS HIGH COURT] has held that House Keeping and Garden Services where an employer spends money to maintain their factory premises in an eco-friendly manner, the tax paid on such services would form part of the cost of final products and the same would fall within the ambit of ‘input services’ - Cenvat credit of service tax paid on Garden Maintenance Service allowed. Brokerage charges - Held that: - Brokerage charges paid by the company for getting residential accommodation for Japanese employees in Bangalore is also related to the business of the company and fall in the definition of ‘input service’ - credit allowed. Golf Club Membership Fee - Cargo Handling Charges for Japanese expatriation/repatriation - Pandal/Shamiana Charges - Held that: - the appellant is not entitled to Cenvat credit of service tax paid on these three services as these services are not integrally connected with the business of the assessee and therefore the appellants are not entitled to Cenvat credit on these three services. Equal penalty on the appellant is set aside and a penalty of ₹ 1000/- u/r 15 of CCR 2004 imposed. Appeal disposed off - decided partly in favor of appellant.
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