TMI Blog2012 (12) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... ia (P) Ltd. [2011 (4) TMI 201 - KARNATAKA HIGH COURT] and C.C.E., Bangalore III vs. T.G. Kirloska Automoiive Pvt. Ltd [2011 (4) TMI 206 - KARNATAKA HIGH COURT]; that also judgment of Hon’ble Punjab & Haryana High Court in the case of C.C.E., Chandigarh I vs. M/s Federal Mogul Goetze (India) Ltd [2011 (9) TMI 120 - PUNJAB AND HARYANA HIGH COURT] is followed. cenvat credit in relation to the ambulance services - held that:- Factory owner is under legal obligation to ensure basic medical facility for the welfare of the employees who may suffer from injury in accident or may suddenly fall sick. In the instant case, hiring of ambulance for carrying sick employees to the hospital for treatment is extension of the aforesaid legal obligation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,435/- in respect of rent-a-cab service for transporting children of employees/workers to school/tuition centres and back. 2. The Department being of the view that appellant are not eligible for cenvat credit in respect of rent-a-cab services availed for the above three purposes, issued a show cause notice dated 4.9.2009 for recovery of allegedly wrongly taken credit amounting to Rs.65,58,369/- during the period from July 2004 to January, 2009 along with interest and also for imposition of penalty on the appellant. This show cause notice was adjudicated by the Commissioner vide order -in - original dated 6.8.2010 by which the Commissioner held that rent-a-cab service availed by the appellant for the purposes mentioned above, is not cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ools/tuitions centre and dropping them back, these services are also covered by the definition of Input Service as the appellant s factory and workers residential colony are located in far-off area where no conveyance is available. He, therefore, pleaded that impugned order is not sustainable. 5. Shri Sanjay Jain, ld. A.R. for Revenue, defended the impugned order by reiterating the findings of the Commissioner in it and emphasised that rent-a-cab service availed by the appellant for bringing employees from their residence to the factory and dropping them back, transportation of the sick employees to the hospital and transportation of the worker s children to the schools/tuition centres and dropping them back, have no nexus with the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the welfare of the employees who may suffer from injury in accident or may suddenly fall sick. In the instant case, hiring of ambulance for carrying sick employees to the hospital for treatment is extension of the aforesaid legal obligation of the assessee. Otherwise also, health of the workers in a factory has direct relation to its output and therefore, in our considered view, the service tax paid on ambulance service i.e rent-a-cab service for ambulance, by the appellant in respect of welfare of employees has nexus with the production of final product. Accordingly, we are of the view that the Commissioner has fallen in error in disallowing aforesaid cenvat credit to the appellant. 9. As regards the service of rent-a-cab availed fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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