TMI Blog2015 (12) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... t be held to have any nexus with the ‘Output Service’. Therefore, in such scenario, CENVAT credit of the duty/ service tax on such inputs/ input services would not be available to the assessees. We find fort in the decision of this very Bench of the Tribunal in the case of M/s. One Advertising & Communication Services Limited vs. Commissioner of Service Tax, Ahmedabad - [2012 (5) TMI 219 - CESTAT, AHMEDABAD] - appellant would not be eligible to take CENVAT credit in respect of the Mediclaim which is in the nature of a welfare measure and voluntary, in the instant case. Therefore, we uphold the order of the Commissioner (Appeals) in the said respect. - However, penalty is set aside - Decided partly in favour of assessee. - Appeal No. : ST/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices have been the subject matter of contentions before this Tribunal and various High Courts in a few cases. On careful analysis of these decisions, it is observed that the basic logic adopted by the High Courts and the Tribunal is that if the inputs/ input services are taken or provided in pursuance of statutory requirements, then the assessees are duty bound to observe the same and hence credit of duty/service tax paid on such inputs/ input services would be eligible. However, when such inputs/ input services are taken by the employees or offered to the employees as welfare measure and is voluntary in nature, the same cannot be held to have any nexus with the Output Service . Therefore, in such scenario, CENVAT credit of the duty/ ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness and therefore the credit is admissible. Ld. A.R. relied upon the decision of Honble High Court of Gujarat in the case of CCE v. Gujarat Heavy Chemicals Limited - 2011 (22) S.T.R. 610 (Guj.), wherein a view has been taken that Service Tax paid on welfare activity are not admissible as CENVAT Credit. At this stage, the authorized representative submitted that since the amount involved is small, he would not like to contest this issue as far as this appeal is concerned. As regards Hotel services, the ld. authorized representative submitted that the Service Tax was paid in respect of Hotel rent for the stay of their Chief Executive for the purpose of business and meeting the clients. Even though, it was contested by ld. AR, I find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and be categorized as input used in manufacture of final product. We are conscious that the said decision of the Apex court is referred to Larger Bench. However, at this stage, the ratio laid down therein prevails. 13. In the case of Ultra Tech Cement Limited (supra), on which counsel for the respondent has placed heavy reliance, the Bombay High Court was considering outdoor catering service provided by the employer for its employees. It was a case wherein to provide for the canteen facilities to the workers was mandatory and failure to do so would entail penal consequences. It was on this background, the Bombay High Court held that outdoor catering services provided by the manufacturer to its workers would be covered within provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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