TMI Blog2008 (11) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 7-2-2007 12/07-08 dated 11-10-07 18/08 (MY)(ST) February 2006 to November 2006 Rs. 1,37,856/- 2. 12-12-2006 13/07-08 dated 12-10-07 19/08 (MY)(ST) January 2005 to January 2006 Rs. 52,852/- 2. Appellants are registered manufacturers and also service tax payers for transport of goods by road in terms of sub-rule 2(d)(v) of Service Tax Rules, 1994. It was noticed that appellants had availed credit of service tax paid in respect of services of personal vehicle maintenance, insurance and repaid and personal accident policy/insurance claim, even though the said services are not specified and not fit into the definition of Input services as per the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customers premises and confirmed the demand proposed in the Show Cause Notice. Aggrieved by this, appellants filed this appeal on following grounds. 1. Relying on a number of case laws, appellants argued that they are eligible for Cenvat credit on GTA up to the place of removal. 2. They are eligible for Cenvat credit on personal vehicle maintenance, insurance, repair and personal accident policy/insurance as the definition of input service includes transportation from the place of removal. The vehicles are in the name of the company and are used in relation to the manufacture or production of their final product for either bringing inputs into the factory or transporting finished goods from the factory. Accident insurance schemes are a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. I find that Tribunal in number of decisions has held that Cenvat credit on service tax paid on mobile phones used by the employees but bills paid by the company and also the service tax paid on outdoor catering services, providing canteen facility to employees is eligible. Some sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant provided the details as below : 1. Whether the Insurance scheme is compulsory or optional? Our industrial estate is notified under ESI Act and hence we need to cover all our employees under ESI. However, if any draws a salary of more than Rs. 10000/- per month, then they go out of the ESI cover. For such employees who come out of ESI purview, it is the responsibility of the employer to provide for all medical benefit and accident cover under the Factories Act. Hence the company has taken mediclaim policies and Personal Accident policies for such employees who are out of ESI purview. 2. Whether the insurance premium is deducted from salary? The insurance premium is entirely borne by the company and not deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ludhiana - 2007 (6) S.T.R. 249 (Tri Delhi) - 2007 (212) E.L.T. 410 (Tribunal) and held the same view. 9. Similarly in the case of M/s. Ultratech Cements Ltd. v. CCE, Bhavanagar - 2007 (6) S.T.R. 364 (Tribunal) = 2007-TIOL-429-CESTAT-AHM, it was held that after the final products are cleared from the place of removal, there will be no scope of subsequent use service to be treated as input. Board vide Para 8.1 of Circular No. 97/8/2007-S.T., dated 23-8-2007 has clarified that a manufacturer/consignor can take credit on the service tax paid on outward transport of goods up to the place of removal and not beyond that. Following the ratio of all these decisions and circular I hold that appellants are not eligible to avail Cenvat credit on ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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