TMI Blog2008 (2) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ed:- 29-2-2008 - Shri. A. K. Srivastava, Member (T) [Order]-1. These appeals have been filed by M/s.Victor Gaskets India Limited, M/s.Bosch Chassis Systems India Limited and M/s.Bajaj Electricals Limited against Order-in-Appeal No.P-I/BBP/72/07 dated 18.7.2007, No.P-I/BBP/73/07 dated 18.7.2007 and No.PI/BBP/55/2007 dated 28.06.2007 passed by the Commissioner of Central Excise (Appeals), Pune-I. 2. Heard both sides and perused the records. 3. Since the issue involved in all the three appeals is common, these are being taken up together for disposal by a common order. 4. In Appeal No.E/1240/2007-Mum relating to M/s.Victor Gaskets India Limited, the inadmissible Cenvat credit involved is Rs.96,912/- for the period from Janu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit of the service tax paid on -out door catering services- i.e. canteen service treating the same as "input service" under Rule 2(l) of the Cenvat Credit Rules, 2004. 8 . As per Rule 2(l) of the Cenvat Credit Rules, 2004, "input service" means any service, - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of the final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants. 10. The expression "in relation to" used in Rule 2(l) has to be given a wide connotation as has been held by the Apex Court in: (i) Solaris Chemtech Ltd.- 2007 (214) ELT 481 (SC) (ii) Doypack Systems Pvt.Ltd.- 1988 (36) ELT 201 (SC) 11. The illustrative list of activities relating to business in the inclusive definition of 'input service" as reproduced above, consists of accounting, auditing, financing, recruitment and quality control, coaching and training, computer, networking, credit rating, share registry, security. The credit of service tax paid on activities like coaching and training, credit rating, although not directly or indirectly related to manufacture of goods, is admissible as input service credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1963 also mandates such a requirement of provision of canteen. The appellants factory has more than 250 workers. Since the provision for canteen facility is a mandatory requirement, as stated above, the appellants would be subject to penal action by the State Government if they violate the mandatory requirements. 13. It may be noted that levy of fringe benefit taxes is on business expenses. The appellants have contended that they pay fringe benefit taxes on canteen related expenses under Income Tax Act and as the said tax is a levy on business related expenses, the Appellants' payment of the same on the canteen related expenses would be considered as a business related expenses and hence, the same would get covered under the "activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue expenditure for the reason that repair and reconstruction enable the assessee company to carry on its business. 18. The Hon'ble Bombay High Court, in Greaves Cotton Co.Ltd. vs. CIT- 2005 (279) ITR 42 (Bom), has held that the expenditure incurred on maintenance of transit quarters used for accommodating employees visiting Bombay from outstation for business purpose was to be allowed in computing the income chargeable under the head "profit and gains of business or profession' under Section 37(1) of Income Tax Act. 19. In the light of the foregoing discussion, I hold that the credit of the service tax paid on the outdoor catering (canteen) service is admissible as input service under Rule 2(l) of the Cenvat Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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