TMI Blog2015 (11) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... the employee, it cannot be said that it forms part of the final cost of output service. One of the principles followed for allowing the benefit of cenvat credit is that it should form the cost of manufacture of input, output and final product or it should form cost of output service. When the cost of leasing is not borne by the company, it cannot be said that it forms pat of the output service. In such a scenario it would not be appropriate to allow the assessee to avail the benefit of cenvat credit without incurring any cost and availing only the benefits which may offer to be passed on to the employee or may not be, with which I am not concerned. Therefore I do not find any reason to interfere with the decision of the lower authorities t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the matter itself can be finally disposed of. Both the sides have no objection. Accordingly the requirement of pre-deposit is waived and the appeal is taken up for final decision. 3. Appellants lease cars and provide it to their employees. Lease agreement is between the assessee and the leasing company. The vehicle is in the name of the company. However the appellants recovered the EMI from the employees and paid it to the leasing company. The learned Commissioner has observed that other local taxes are also collected but in the absence of documentary evidence tax should not be considered. However the appellants take cenvat credit of the service tax paid and there is no finding that the service tax has been recovered from the employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is borne by the consumer. Shri Shridharan, learned counsel for the assessee fairly conceded to the above position in law and in fact filed an affidavit affirmed by a responsible officer of the assessee wherein it is stated that the proportionate credit to the extent embedded in the cost of food recovered from the employee/worker has been reversed. In this case the fact that cost of EMI payable towards leased vehicle is recovered from the employees would show that this is only a ploy adopted to ensure that the benefit of depreciation of the vehicle can be availed by the company and benefit of service tax also can be availed by the company. Both these benefits would have been lost if the individuals were to purchase a vehicle or lease a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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