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Rajsriya Automotive Industries Pvt. Ltd., (Unit-II) Versus Commissioner of Central Excise, Chennai-III

2016 (7) TMI 351 - CESTAT CHENNAI

Cenvat Credit - input services - credit of service tax paid in respect of housekeeping services and supply of drivers under the man power supply agency service - nexus with manufacturing activity - Held that:- appellant succeeds in respect of availment of credit on Housekeeping services. - As regards the availment of credit in respect of hiring of drivers under man power supply service, the allegations and its rebuttal is not backed with proper documents or evidences on record to prove the admis .....

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tries Pvt. Ltd., (Unit-II), the appellant herein, are manufacturers of motor vehicle parts, and are availing cenvat credit on the inputs, capital goods and input service used in the manufacture of their final products and utilizing the same towards payment of duty. They have availed cenvat credit of service tax paid in respect of housekeeping services and supply of drivers under the man power supply agency service. The period of dispute involved in this appeal is Jan 2008 to October 2012. A show .....

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2011, the issue is no longer res integra and is well covered by the decisions of the Tribunal and the High Court. For the period from 1.4.2011 to October 2012, in respect of housekeeping services, the learned counsel has submitted that this Tribunal in appellant's own case vide Final Order No.40710-40711/2016 dt. 27.4.2016 allowed their appeal in respect of housekeeping services. 2.1 Regarding the other issue, i.e. service of the drivers, he submits that the drivers have been used to drive/o .....

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mits that w.e.f. 1.4.2011, rent-a-cab operator service is not an eligible input service. Hence the service of the drivers, which is in the nature of services provided only for picking up and dropping of officers and the staff of the company by car, will not qualify as an eligible input service used in or in relation to the manufacturing activities. 3.1 Regarding the housekeeping service, he submits that the service done by the labour contractor is only for cleaning toilets, cleaning of canteen, .....

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rried out using the taxable service cenvat credit may not be disallowed. This view is supported by the following Tribunal/High Court's decisions :- (1) Delphi Automotive Systems Pvt. Ltd. Vs CCE Noida- 2015 (315) ELT 325 (Tri.-Del.) (2) CCE & ST, LTU, Chennai Vs Rane TRW Steering Systems Ltd. - 2015-TIOL-1057-HC-MAD-CX. (3) Delphi Automotive System Pvt. Ltd. Vs CCE Noida-2014-TIOL-2597-CESTAT-Del. (4) CCE Chennai Vs Rotork Control (India) Pvt. Ltd.-2012 (277) ELT 217 (Tri.-Chennai) (5) T .....

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ly service, I find that the appellant had made categorical submission as to how the hiring of drivers under the man power supply is relevant to their business activities. The appellants had contended that they have availed the service of the drivers for the operation of the Fork-lift inside their factory for the movement of their raw-materials and other allied activities which are having direct nexus to the manufacture of their final products and they further contended that they have availed the .....

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taff only and not for operating fork lift to move the raw materials. In this regard, the Appellant has argued that the job of drivers is to drive the company vehicles like fork lift mainly to move the sheet metal, tubes etc. from stores to production department and also for loading and unloading the materials for production. The Appellant contends that this activity is related to their business and hence credit is eligible to them. In this regard, I find that the driver's service generally i .....

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