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2016 (7) TMI 348 - CESTAT NEW DELHI

2016 (7) TMI 348 - CESTAT NEW DELHI - 2016 (46) S.T.R. 413 (Tri. - Del.) - Cenvat Credit - input services of manpower supply services for the benefit of employees - The Revenue is of the view that manpower that has been supplied by the service provider, consists of Nurses and Doctors and hence it falls under Exclusion Clause category of the definition of Rule 2(l)(C) of the Cenvat Credit Rule, 2004. - Held that:- It is can be seen from the above reproduced clause both the authorities are relying .....

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Credit allowed - Decided in favor of assessee. - Central Excise Appeal No.53562 of 2015-EX(SM) - Final Order No. 52165/2016 - Dated:- 22-6-2016 - Mr. M.V. Ravindran, Judicial Member Present Shri Bipul Agarwal, Advoate for the appellant Present Shri M.R. Sharma, A.R for the Respondent/Revenue ORDER This appeal is directed against the Order-in-Appeal No. BHO-Excus-002-APP-142-15-16 dated 28.7.2015. 2. The issue involved in this case is regarding eligibility to avail cenvat credit of the service ta .....

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avail cenvat credit, accordingly the demand is upheld by the adjudicating authority and penalty has been imposed. 3. Ld. Counsel for the appellant draws my attention to the fact that posting of the medical profession in the factory is mandatory as per the provisions of the Factories Act, 1948 and Mines Act, 1952. It is his submission that in order to follow the mandated provisions they had sought services of manpower recruitment and supply agency provide the persons to provide Doctors and Nurses .....

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orities have deviated from the decision of the Tribunal only on the ground that the period involved in this case is covered by the Exclusion Clause under Rule 2(l)(C) of the Cenvat Credit Rules, 2004. He would submit that this issue has been decided by this Tribunal in AET Laboratories Pvt. Ltd. vs. Commissioner of Central Excise, Customs and Service Tax, Hyderabad -I - 2015 - TIOL -2828 - CESTAT - BANG. It is his submission that exclusion clause is for health services and is not for personal co .....

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find that the issue involved in this case is regarding eligibility of avail cenvat credit of service tax paid on the services received in respect of manpower recruitment and supply agency services. It is undisputed fact that the appellant had hired service provider for supply of manpower services which has recruited posting of Doctors and Nursing staff in the appellant s factory. 6. The entire issue revolves on the Exclusion Claus as per term of Rule 2(l)(C) of Cenvat Credit Rules, 2004 which ar .....

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clause which provides for excluding cenvat credit in respect of health services; in the entire provisions of the Finance Act, 1994, there is no definition of health services. At the same time, it is also being undisputed that the posting of Doctors and Nursing staff is at the behest of the appellant in order to comply with statutory obligation under the Factories Act, 1948 and Mines Act 1952, the same cannot be considered as the procurement from personal consumption of the workers. This is the t .....

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ance etc., when such services are used primarily for personal use or consumption of any employee. This means that when the cost is borne by the company and the company is under a legal obligation to provide outdoor catering service to its employees or to provide insurance service to its employees , the said exclusion clause would not apply. However on being questioned as to what would be the interpretation of the expression used primarily for personal use or consumption of any employee , learned .....

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