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2020 (9) TMI 937 - AT - Service TaxCENVAT Credit - input services - Short term hotel accommodation service - rent-a-cab service - outdoor catering and housekeeping services - period from April 2016 to June 2017. Short term accommodation in hotels - HELD THAT:- The Appellant’s personnel necessarily had to undergo the required training to obtain the necessary permissions and approvals for the service recipient to avail the services of the Appellant. Had such training not been completed before such personnel were deployed at the rig, the service recipient would have deducted a certain amount at the time of payment to the Appellant. In any case, the Appellant could not afford to deploy people without the required police clearance certificate and Safety training. Therefore, the Appellant had no choice but to accommodate its personnel for the time impending the said approvals and permissions. The said service extended to its personnel by the Appellant would not qualify as a service availed for personal consumption - the said service is in relation to and in pursuance of the service being provided by the Appellant - Credit allowed. Rent-a-cab Service - HELD THAT:- As an operational requirement, they are required to send surveyors, naval officers for surveys and naval security clearance on their rigs. In this regard, they are required to hire vehicles for transporting such officers. Further, the Appellant is also required to provide conveyance for inspection agencies for various inspections such as Fire safety, underwater inspection, tubular inspection, thickness gauging inspection, etc. Therefore, the Appellant has availed Cenvat credit on the said input service - Tribunal in M/S. MARVEL VINYLS LTD. VERSUS C.C.E. INDORE [2016 (11) TMI 1126 - CESTAT NEW DELHI] while considering the amended definition of input service has already decided the matter in favour of the assessee and held that the definition does not provides for total exclusion but only restricts those cases where the vehicles do not qualify as capital goods. From recipient point of view, motor vehicle can never be capital goods and he would never be eligible for credit if a narrow interpretation is given - Credit allowed. Outdoor Catering Service - HELD THAT:- As the personnel working at the rig have been deployed by the Appellant, it is the Appellant’s responsibility to ensure healthy working conditions for such personnel. Therefore, the Appellant had availed the said service to prevent food from getting spoilt. The access to proper food is the most basic requirement for any person to carry out a task - The Commissioner (Appeals) ought to have appreciated the facts of the present case, wherein the personnel have been deployed on a rig and away from the coastal area. The said personnel do not have access to food other than what is available on the rig and therefore, it is apposite in the given circumstances for the Appellant to ensure that its personnel remain healthy - The Hon’ble Rajasthan High Court in COMMISSIONER, CENTRAL EXCISE VERSUS M/S MANGLAM CEMENT LTD. [2017 (11) TMI 483 - RAJASTHAN HIGH COURT], for a period post the amendment of the definition of input service (w.e.f. 01.04.2011) and has held that ‘Outdoor Catering’ services are required to be carried out for the process of manufacture and delivery and hence eligible for credit - Credit allowed. Appeal allowed - decided in favor of appellant.
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