TMI Blog2018 (12) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of manufacture of the final product and these cost formed part of the excisable value on which Excise Duty was discharged. Service availed at the club premises - Held that:- The maintenance and repair service of various civil and electrical work, carpenter work has been availed at the school, colony and the club maintained by the appellant for its employees. However, the Cenvat Credit of Service Tax Paid on service availed at the club premises cannot be allowed - credit not allowed. The period involved is prior to 01/04/2011, when the definition of input service during the relevant period had wide ambit as it included the words “activities related to business” - the respondent-assessee is eligible for availing credit of Service Tax paid on the Services availed for the purposes of its business activities except the services availed in respect of the club premises. Appeal allowed in part. - Appeal No. E/76278/17 - FO/76520/2018 - Dated:- 26-4-2018 - SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL) Shri D. Haldar, A. C. (A. R.) for the Revenue Shri Avra Majumdar, Advocate for the Appellant (s) ORDER PER SHRI P.K. CHOUDHARY The Respondent is eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cenvat credit account and availed the credit. 4 Group Health Insurance Service 8,115 /- This amount paid towards premium on Group Health Insurance policy taken for staff to cover the risk of health hazards. As the operation of factory involves handling of heavy machines and various manufacturing process, the responsibility lies on the company to maintain goods health of their staff. The service tax charged by the insurance company is related to the manufacturing of goods and well applied to the definition of Input Services. 5 Cleaning/House Keeping Service 216,193/- Cleaning Housekeeping services availed towards cleaning and maintenance of various work places like Machine Shop, Fabrication yard and Assembly Shop etc., in a clean environment and to comply to the provisions of Factories Act. The service tax charged by the contractors are considered as input services directly involved in the manufacture of goods and availed cenvat credit accordingly. 6 Gardening /Vegetable Lawn 679,689 /- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble High Courts and the Tribunal in various decisions have specifically held that any expenditure incurred by an assessee, if it forms part of the price of the final product, on which Excise Duty is paid, Cenvat Credit must be allowed on the said Service Tax, if the manufacturer can demonstrate that the said expenses are in relation to the manufacture of final product. The Central Excise Duty paid by the appellant on their finished goods is on ad-velorom which has been arrived at after considering all the expenses that had gone into manufacturing of the finished goods. In so far as the present facts of the case is concerned, it is not in dispute that the credit of Service Tax has been availed on services such as Banking and other Financial Service, Courier Service, General Insurance Service, Group Health Insurance Service, etc. which were received and used by the assessee for the purpose of manufacture of the final product and these cost formed part of the excisable value on which Excise Duty was discharged. It is relevant to note here that factories are generally set up at remote location which are several hundred kilometers away from big towns and cities. Given this fact, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 Place:- Rajgangpur (CA. ANIL SHARMA) Membership No. 066720 ICAI FRN NO. 326606E STATEMENT SHOWING THE HEAD OF EXPENDITURE BOOKED IN PROFIT LOSS A/C DURING THE FINACIAL YEAR SCHEDULE 1 OF CERTIFICATE YEAR INSURANCE REPAIRS TO PLANT MACHINERY CLEANING CHARGES (MCO ACTIVI TY) HOUSE KEEPING MCO ACTIVICY (OTHER REPAIRS MAINTENANCE) INSURANCE COURIER EXPENSES BANK CHARGES ESTATE MAINTENANCE CLEANING CHARGES HOUSE KEEPING (OTHER RREPAIRS) TOTAL 2006-07 2615927 20,869,172 701,839 110,366 2826616 365,214 1,959,100 2,112,242 2,198,379 1,627,272 35,386,127 2007-08 2053315 20,646,018 195,343 173,162 3245415 442,949 2,092,573 2,237,128 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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