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2016 (8) TMI 482

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..... ed that the appellant categorically stated that it did not recover any part of the service tax from its employees and the entire service tax was paid by the appellant only. Therefore, the Cenvat credit is admissible. - Decided in favour of appellant with consequential relief - Appeal Nos. E/52092-52094/2015-EX[SM] - Final Order Nos. 50150-50152/2016 - Dated:- 25-1-2016 - R. K. Singh, Member (T) For the Appellant : Ms Sukriti Das, Adv For the Respondent : Mr G R Singh, DR ORDER Per R. K. Singh Appeals have been filed against Order-in-Appeal dated 02.03.2015.The issue involved in these appeals is whether CENVAT credit is permissible under 'Rent-a-Cab' service for engaging cabs for carrying staff from residence .....

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..... applicable to the present case. 4. I have considered the contentions of both sides. In the case of CCE Vs. Interplex Electronics India Pvt. Ltd. (supra), the Karnataka High Court clearly held that rent-a-cab service used for transportation of employees from home to factory and back to home qualified for input service for the purpose of CENVAT credit. CESTAT judgement in the case of Prayas Engineering Ltd. Vs. CCE (supra) cited the CBEC circular No.943/4/2011-CX, dated 29.04.2011 in support of its decision that such credit is admissible. As regard the contention of the ld. Departmental Representative that the appellant had recovered the cost of transportation and therefore in the light of the Bombay High Court judgement in case of CCE, N .....

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..... 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. It is evident from the foregoing para that the Bombay High Court only observed that once the service tax was borne by the ultimate consumer, the manufacturer cannot take credit of that part of service tax which was borne by the consumer. Apart from the fact that the Commissioner (Appeals) has taken this new ground which was not mentioned in the Show Cause Notice and thus traversed beyond the Show Cause Notice, it is also noted that the appellant categorically stated that it did not recover any part of th .....

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