TMI Blog2010 (4) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing process - As per the decision of the Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement Ltd.[2010 -TMI - 78203 - BOMBAY HIGH COURT], the decisions specifically rule that catering services for providing food to employees in the factory qualifies to be input service in or in relation to the manufacture of final product - Decided in favour of assessee. services of tour and travel operators - Held that:- that this service was utilised for bringing the employees from their residence to factory and back. This also is integrally connected with the manufacture of final product and therefore credit of tax paid on such service should be allowed. He relies on the decision of this Tribunal in the case of CCE, Vadodara Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out that the purpose for which the service was used has not been explained in the reply to Show Cause Notice or in the submissions made before the Commissioner (Appeals). It is also argued that there is no way to know whether the cost of such tour and travels were recovered from the persons actually using the service. Therefore, ld. DR argued that Cenvat credit allowed by the Commissioner (Appeals) on either of the services is not legal and proper. 3. The Advocate for the Respondent submits that during the relevant time the number of employees in their factory was about 260 and he submitted a copy of Provident Fund challan for the month of December, 2007 to prove his claim. As per the Factory Act, the Respondent was required to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of Employees Provident Fund is not an acceptable evidence because it was produced only at the stage of second appeal. Further, the challan is only for one particular month and it is not a representative challan. He also submits that EPF challan will be for all the subscribers of the company including those working in the head office, other factories and elsewhere. So he argues that decision may not be based on the copy of the challan produced. 6. Considered arguments on both the sides. As far as outdoor catering service is concerned, there is no law laid down anywhere that such service will be in relation to manufacture only if the number of employees is more than 250. In some of the decisions, the affected parties had argued tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, very much related directly or indirectly to the manufacture and clearance of final products from the factory of manufacture. Moreover, expenses on tour and travel services, for the employees are permissible as business expenditure as per income tax law and fringe benefit tax is also paid on such expenses, making it clear beyond doubt that these services are definitely related to the business of the notice manufacturer and accordingly are eligible input service . 8. The order-in-original gives the finding that as regards tours and travels services the party has submitted that the service was used exclusively in relation to manufacture/clearance of final product or in relation to business of the noticee. They have not exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m their place of residence to the factory and back, his client will be able to prove his claim by supporting documents. Since the merits of the issue is already settled by the Tribunal in the case of Deloitte Tax Service India Pvt. Ltd., I accept the principle laid down by the Tribunal but remit the matter for verification of relevant facts that it was used exclusively for transporting employees from their place of residence to the factory and back. Such documents should be provided before adjudicating authority within 60 days of this order without waiting for further notice. If the respondent is not able to produce any supporting document to support his claim it will be deemed that they are not eligible for credit on this account. If such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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