TMI Blog2013 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regard to the fact many services usually received by corporate office is listed specifically in the inclusive portion of the definition of input service. The concept of “input service distributor” as defined in Rule 2 (m) of the Cenvat Credit Rules, 2004 also implies allowing credit of services availed by an office which cannot utilize the credit as in the case of a corporate office. In the first place as per the definition input service means service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. The scope of this expression is further expanded by an inclusive portion mentioning specific services to remove any ambiguity in the definition in respect of these services. Such inclusive part has one expression reading 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. Here again the listing within this category cannot be taken to be exhaustive but only illustrative. Against such legal frame work it is to be decided wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority held that the definition of input service in Cenvat Credit Rules can extend only to services which have a proximate nexus to manufacturing activity; the definition cannot be extended to the services received at corporate office for officers and executives working in that office which is the situation in this case; providing rent-a-cab services to executives to come to office is only a welfare activity and not activity relating to manufacture. 5. It is further argued that the scope of the inclusive portion of the definition at Rule 2 (l) gives illustrative services and the services in question do not fall within the category illustrated by the list following the expression such as in the definition. It is argued that unless it is demonstrated that the manufactured product cannot emerge without the service in question the service cannot be considered as an input service. The adjudicating authority relied on the following decisions:- (i) CCE Vs. Manikgarh Cement- 2010 (20) STR 456 (Bom) (ii) CCE Vs. Sundaram Brake Linings-2010 (19) STR 172 (Tri-Chennai) 6. However, the finding on fact as seen recorded by the adjudicating authority towards the end of para 11 reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services claimed to be used by appellants are not in relation to the manufacture of final products and hence, such input service credit availed by the appellants, is ineligible read with the definition of input service under Cenvat Credit Rules, 2004. 4.3 In the case of Hindustan Coca Cola (P) Ltd Vs CCE Hyderabad 2010 (18) STR 57 Tri-Bang credit on rent a cab services and outdoor catering services were allowed when it was not in dispute that the services were received in the factory premises. Contrary to this the services pertaining to the appellants were not received in the factory premises. In the case of Commissioner of C. Ex Nasik Vs Cable Corporation 2008 (12) STR 598, only when Rent a cab service used for bringing employees working in the factory for manufacture of goods, the said service was considered to be used indirectly in relation to manufacture or as part of business activity. In the case of Commissioner of C. Ex., Jaipur II Vs. J.K. Cement Works, 2009 (14) STR 538 citing on the above case law of C. Ex Nasik Vs Cable Corporation, the respondents therein explained the use of hired taxis in relation to manufacture of cement and the tribunal allowed credit. The impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne by the corporate office. So the argument that services availed by corporate office cannot be considered as input service runs contrary to the the plain meaning of the definition. 10. He relied on the following decisions: (i) CCE Vs. Stazen Toyotetsu India (P)- Ltd-2011 (23) STR 444 (Kar) (ii) CCE Vs. Beekay Engg. Castings Ltd-2009 (16) STR 709 (Tri-Del) (iii) Heartland Bangalore Transportation Ser (P) Ltd Vs. CST-2011 (21) STR 430(Tri-Bang) (iv) J. K. Sugar Ltd Vs. CCE -2011 (270) ELT (Tri-Del). 11. On the other hand the Ld A. R. for Revenue relies on the following decisions: (i) CCE Vs. Manikgarh Cement-2010 (20) STR 456 (Bom); (ii) CCE Vs. Cadila Healthcare Ltd.-2013 (30) STR 3 (Guj); (iii) CCE Vs. Gujarat Heavy Chemicals Ltd. 2011 (22) STR 610 (Guj); (iv) Disa India Ltd. Vs. CCE-2011 (24) STR 507 (Tri-Bang). 12. After going through the large number of decisions relating to rent a cab-service it is seen there is a uniformity in view of the Courts and Tribunal that has emerged that rent a-cab services utilized to bring workers or executives to factory is covered by definition at Rule 2 (l). The argument of the Revenue is that decisions in respect of tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to services availed in residential colonies of assessees and not corporate office. I find no reason to extend this distinction made in respect of residential colonies to services received in corporate office. 14. Though the matter is examined above with reference to rent-a-cab service similar logic should apply to contract bus service and telephone service. In the case of telephone service the clarification issued by Ministry vide para 8.3 of Circular No. 97/8/2007-S.T., dated 23-8-2007 is very relevant. However the Commissioner (Appeal) has recorded that the appellant has not produced evidence to show the nexus between the manufacturing activity and the services in question. It is not understood what sort of nexus is being asked for. Is it necessary to show what was talked in each call through each of the telephone in respect of which Cenvat credit is claimed? Demand for such demonstration can only lead to meaningless harassment to assessees. Where the expenditure is incurred by the company in its books of accounts there is a presumption in favour of the appellant that the service is availed in relation to their business. So long as Revenue has not proved anything to the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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