TMI Blog2014 (2) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... their person work, it cannot be presumed that mobile phones have been used by the employers for their personal work only - telephone services availed in respect of the mobile phones supplied to their employees are admissible for cenvat credit. In view of this, the impugned order disallowing the cenvat credit in respect of telephone services is not sustainable - insurance is the requirement of Section 38 of the Employees State Insurance Act, 1948 mandating that all the employees be insured in the manner provided in this Act. In view of this, it has to be held that providing of insurance cover to the employees for compliance with the provisions of Employees State Insurance Act, 1948 has to be treated as service used in or in relation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner were reviewed by the Commissioner and review appeals were filed before the Commissioner (Appeals). The Commissioner (Appeals) by a common order-in-appeal no.IND.104/105/111 dated 12.3.2011 allowed the department's appeal and reversed the Asstt. Commissioner's order. Against this order of the Commissioner (Appeals), these two appeals have been filed. 2. Heard both the sides. 3. Ms. Rashi Surekha, Advocate, ld. Counsel for the appellant pleaded that sofar as courier service is concerned, the same was used only for the dispatch of the documents, that this activity is covered by expression "activities relating to business" which was covered by the definition of "input service" given in Rule 2(1) of the Cenvat Credit Rules, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the cenvat credit of service tax paid on mobile telephone service supplied to the employees would be admissible and that in view of the above submissions, the impugned order denying the cenvat credit in respect of these services is not sustainable. 4. Shri P.K. Sharma, ld. Departmental Representative defended the impugned order by reiterating the findings of the Commissioner (Appeals) in it and pleaded that so far as telephone service is concerned, there is nothing on record to show that the same had been used in connection with the manufacturing business of the appellant, that no evidence in this regard had been produced by the appellant, that as regards courier service, the same had been used for dispatch of the documents and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the "activities relating to business". Though the expression "activities relating to business' is followed by an expression "such as (a) accounting, (b) auditing, (c) financing, (d) recruitment and quality control (e) coaching and training, (f) computer net working, (g) credit rating, (h) share registry (i) security (j) inward transportation of inputs or capital goods, and (k) outward transportation up to the place of removal, the activities listed after words "such as" are not exhaustive and as such, the expression "activities relating to business" would cover all the activities which have nexus with the business of manufacture. This is what has been held by Bombay High Court in the case of Ultratech Cement reported in 2010 (260) ELT 369 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re admissible for cenvat credit. In view of this, the impugned order disallowing the cenvat credit in respect of telephone services is not sustainable. 8. As regards the insurance service, the same had been used for Group Insurance of the employees as well as insurance of the company's vehicles. As regards the Group Insurance of the employees, the Hon'ble Karnataka High Court in the case of Stanzen Toyotetsu India (P) Ltd.(supra) and also in the case of Micro Labs Ltd. reported in 2011 (270) ELT 156 (Kar.) has held that this service is covered by definition of "input service" and would be admissible for cenvat credit. Moreover this insurance is the requirement of Section 38 of the Employees State Insurance Act, 1948 mandating that all the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
