TMI Blog2021 (12) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... Capital Goods for Service Provider - HELD THAT:- Considering the effect of definition of input service after 01.04.2011 it was found that establishment of such canteen was primarily for personal use or consumption of the employees and after such amendment no cenvat credit could be availed. This view has been upheld by the Hon ble Supreme Court in TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED VERSUS THE COMMISSIONER OF CENTRAL TAX [ 2021 (12) TMI 420 - SC ORDER] while dismissing the Special Leave Petition on 18.11.2021 preferred by the said appellant - The facts of the present case also indicate that the facility of transportation provided by the appellant to its employees was merely in the nature of service for personal use or consumption of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer ? (II) Whether the services provided by a Manufacturer of transportation of its employees, from their designated pick up points to their workplace, by Bus, would amount to a service for personal use or consumption of any of the employees? (III) Whether the activity of providing bus transport services to its employees, at the cost of the Manufacturer, to reach factory in time and the expenses incurred by the Manufacturer in providing such service, (which amount is taken into consideration, while determining the final price of the product) can be said to be a component leading to the manufacturing activity, so as to entitle the Manufacturer, the benefit of Cenvat Credit ? (IV) Whether the recipient of services is ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit on the ground that after the amendment, services used primarily for personal use or consumption of any employee stands excluded from the scope of input service and the same was thus ineligible for cenvat credit. The Adjudicating Authority therefore by the order dated 28.12.2016 disallowed cenvat credit for the period from 01.04.2011 to 31.12.2015 and ordered recovery of the same with interest under Rule 14 of the said Rules. Penalty was also imposed on the amount of said disallowed cenvat credit under Rule 15 of the said Rules. This order was challenged before the Commissioner (Appeals) who by the order dated 28.11.2017 partly allowed that appeal and maintained disallowance of cenvat credit but reduced the amount of penalty. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. M/s. Essar Oil Limited), C.M.A.No.157/2010 with connected matters (Commissioner of Central Excise and Service Tax Vs. M/s.Turbo Energy Ltd.) decided on 26.02.2015, C.C.E. and S.T., Mangalore vs. Mangalore Refinery and Petrochemicals Ltd. 2016 (42) STR 6. and Commissioner of Central Excise vs. M/s. Stazen Toyotetsu India (P) Ltd. 2011 (23) STR 444 and submitted that on proper interpretation of the definition of the term input service it was clear that the appellant was entitled to seek cenvat credit even after 01.04.2011. 4. Shri S.N.Bhattad, learned counsel for the respondent on the other hand submitted that the Authorities were justified in disallowing the cenvat credit from 01.04.2011 onwards. According to him, input service w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material basis for denying such cenvat credit was in view of Clause (B) to Rule 2(1) of the said Rules. We find that the Tribunal was justified in disallowing cenvat credit for the reasons mentioned in the impugned order. This is also clear from a reading of Section 65(105) of the Finance Act which excludes rent-a-cab scheme. The transportation of employees from distance of about 40 kms for reaching factory is not an activity which could be said to be a part of manufacturing activity. It is merely for personal convenience of the employees to enable them to reach the premises of the factory so as to thereafter participate in the manufacturing activity. In this regard, the learned counsel for the respondent is justified in placing reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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