TMI Blog2011 (8) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... while if they are not required to provide under the Factory Act or any other Labour Laws, catering facilities to their workers, but still they are providing the same as a welfare measure, in such a situation, the outdoor catering services would not be covered by the definition of "input services" - E/3268 OF 2009-SM (BR) - 700/2011-SM (BR) - Dated:- 18-8-2011 - SHRI RAKESH KUMAR, J. Appearances: Shri A. Khanna for the Appellant. Shri Vasudewan for the Respondent. ORDER 1. The respondents are manufacturers of automobile rubber parts chargeable to central excise duty under Heading No. 4016 of the First Schedule to the Central Excise Tariff Act, 1985. They availed Cenvat credit of central excise duty paid on inputs and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the workers is a welfare activity and not an activity relating to the manufacturing business of the respondent, that the Hon'ble Bombay High Court in the case of CCE v. Manikgarh Cement [2010] 29 STT 230 has held that the services of repair, maintenance and civil construction used in residential colony of respondent's employees, establishing residential colony for employees and maintenance of the same is a welfare activity and not an activity relating to business activities of the assessee and hence the same is not covered by the definition of input service even if the expenditure incurred on such welfare activity may be allowable under Income Tax Act, 1961 and that the activity must have nexus with business of assessee to qualify as inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o their workers, if the respondent still provided the food free of cost, it will be treated as welfare activity and not an activity relating to business and would not be covered by the definition of input service, and that in view of this, the impugned order is not correct. 4. S. Vasudewan, Advocate, ld. Counsel for the respondent, pleaded that the issue of eligibility of outdoor catering services for Cenvat credit is not longer res integra and the same has been decided in favour of the respondent by the judgment of the Hon'ble Bombay High Court in the case of Ultratech Cement Ltd. (supra) and also by the Hon'ble Gujarat High Court in the case of CCE v. Ferromatik Milacron India Ltd. [2011] 31 STT 432, that the same view has been taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts; 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." Thus while the main definition clause covers the services used by the manufacturer whether directly or indirectly, in or in relation to the final products and clearance of the final products upto the place of removal, the inclusive part of the definition covers other services including "activities relating to business" relating to the main definition clause and services received directly or indirectly in manufacture of final products and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen it is required to be provided to workers under provisions of Factories Act, would be covered by the definition of "Input Service" as the same would be indispensable in relation to manufacture of final products. In the case of Manikgarh Cement (supra), wherein the Hon'ble High Court has held that the activities relating to services of repair, maintenance and civil construction used in residential colony of the employees is the welfare activity and not an activity relating to business and the same is not covered by the definition of input services. From a reading of the above judgments, it is clear that the activities which have a clear nexus with the manufacturing business of an assessee would have to be treated as covered by the definit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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