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2015 (10) TMI 1300

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..... 18-3-2015 - Shri Anil Choudhary, Member (J) Shri Bharat Raichandani, Advocate, for the Appellant. Shri N.N. Prabhudesai, Supdt. (AR), for the Respondent. ORDER The present appeals are filed against the order-in appeals passed by the Commissioner of Central Excise (Appeals), Belapur. The details are as follow : Appeal Nos. OIA No. Period Amount (Rs.) ST/608 627/12 BC/84/RGD/12-13, dated 31-5-2012 October, 2004 to March, 2010 Garden Maintenance and Event Management Services - ₹ 23,79,222 Outdoor catering Services - ₹ 13,01,735 ST/745-746/12 US/467 468/RGD/2012 dated 6-8-2012 April, 2007 to March, 2010 Telephone Charges ₹ 1,55,915 Brokerage Services - ₹ 18,300 ST/88139/13 US/124/RGD/20 13, dated 15-5-2013 April, 2011 to March, 2012 Outdoor Catering Services - ₹ 1,130,584 The issue in the present case is on availment of credit of Service .....

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..... ce inviting comments from the trade and industry. Therefore, a Press Note dated August 12, 2004 was also issued along with the draft rules highlighting the salient features of Cenvat Credit Rules. Draft Rules were taken judicial notice in 2004 (170) E.L.T. T-19, in paras (iii) (iv). The relevant extract thereof is as under : (iii) In principle, credit of tax on those taxable services would be allowed that go to form a part of the assessable value on which excise duty is charged. This would include certain services which are received prior to commencement of manufacture but the value of which gets absorbed in the value of goods. As regards services received after the clearance of the goods from the factory, the credit would be extended on services received upto the stage of place of removal (as per Section 4 of Central Excise Act.) In addition to this, services like advertising, market research etc. which are not directly related to manufacture but are related to the sale of manufactured goods would also be permitted for credit. (iv) Full credit of Service tax on services (such as telephone, security, construction, advertising service, market research etc.) which are receiv .....

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..... meaning of words or phrases occurring in the body of the statute; and when it is so used, these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import but also those things which the interpretation clause declares that they shall include. [See (i) Stroud s Judicial Dictionary, 5th edn. Vol. 3, p. 1263 and (ii) C.I.T. v. Taj Mahal Hotel, (iii) State of Bombay v. Hospital Mazdoor Sabha . Further the term such as in a definition is purely illustrative but not exhaustive. It establishes that whatever activities are enumerated in the Rule are only illustrations of service that relate to the business and are not exhaustive in nature. The same was reiterated in the case of Royal Hatcheries (P) Ltd., v. State of A.P. - 1994 Supp (1) SCC 429. Hence any activity, relating to business of assessee would be covered as an input service; business is an integrated/ continuous activity and is not only confined/restricted to mere provision of input services or manufacture of the product. Therefore, activities in relation to business cover all the activities that are related to the functioning of a business. 4.4 Learned Coun .....

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..... there is no positive Act on part of assessee to establish useful misdeclaration, no suppression can be alleged. 4.6 Further the department has clearly misread mis-construed the provision in demand raised for period post April, 2011, as the credit of Service Tax paid on outdoor catering services post April 2011, has been used for providing out put service. The appellant are regulated by dock workers (safely, health welfare) Regulation, 1990 as the employees are more than 250 workers, appellant is under statutory obligation to provide and maintain adequate canteen facilities under the said Regulations. Hence as the catering services are provided by the appellant as a part of its business need obligation to the employees who are the essential hands of the business. Without the said workers/employees, the appellant would not be in position to provide the output service. Hence, it is evident that it has a direct bearing on output services. Further the exclusion (C) clause of the definition of Input service post April, 2011 i.e. (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a .....

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..... f Hon ble Supreme Court was rendered in context of Input and did not consider the definition of input service under Rule 2(1), hence it does not apply to facts of instant case. 5.2 Further, in case cited by learned DR, in case of Manikgarh Cement [2010 (20) S.T.R. 456 (Bom.)], wherein it is held that the expression relating to business in Rule 2(1) of Cenvat Credit Rules, 2004, does not cover welfare activities of assessee and hence Cenvat credit not allowable. The appellant Counsel distinguishes and states, in this case the outdoor catering service, telephone services etc. were being used to benefit the service - business of the appellant and not for benefit of the employees. Further reliance is placed on the view taken in case of BASP Industries - 2011 (24) S.T.R. 30, that credit of Service Tax paid on telephone lines installed at the residence of employees would be available. 5.3 Further the learned AR, submits that as to the contention of the appellant that the amendment vide Notification No. 03/2011-C.E. (N.T.) expressly excluding outdoor catering services vide clause (C) of the definition of Input Services, which was effective from 1-4-2011 is not applicable to em .....

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