9911796707
TMI Blog2010 (4) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... law :- (i) Whether the canteen service/facility, provided in the factory of the assessee was an input service, in or in relation to manufacture, directly or indirectly of the final products, within the meaning and comprehension of Rule 2(i) of the CENVAT Credit Rules, 2004? (ii) Whether the CENVAT credit of the service tax, so paid for receiving the outdoor caterer's services by them for providing canteen services to their employees, was eligible for availment and utilization in terms of Rule 3 read with Rule 2(l) of the CENVAT Credit Rules, 2004? 2. The respondent is a manufacturer of Injection Moulding Machines and parts thereof, falling under Chapter 84 of the first Schedule to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture, the same would not be covered under the inclusive part of the definition, because extension of such facilities would not have any direct or indirect nexus to the manufacture of goods. It was accordingly submitted that the definition of the term "input service" as appearing in Rule 2(l) of the Rules would not bring the service in question within the scope of "input service" so as to be eligible for credit under Rule 3 of the Rules. 4. Under Rule 3 of the Rules, a manufacturer of final products is entitled to take credit of the service tax leviable under Section 66 of the Finance Act paid on any input service received by the manufacturer of the final product on or after the 10th day of September, 2004. In the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ching 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;" 6. As noted hereinabove, 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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