TMI Blog2008 (6) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... by: Shri U.H.Jadhav, JDR for the Appellant Ms. Aparna Hirandagi, Adv for the Respondent CORAM : Shri K.K.Agarwal, Member(Technical) Per : Shri K.K.Agarwal, M.T : This is Revenue's appeal. 2. Brief facts of the case are that the respondents have taken a credit or Rs.59,706/- for the period May 2006 to March 2007 in respect of Service Tax paid by the Service provider i.e Rent-A-Cab Scheme Operator. This credit was sought to be denied as the same was not considered as provided in relation to the production/manufacture of finished products directly or indirectly. The matter was adjudicated by Deputy Commissioner who denied the credit and ordered recovery of interest and also imposed a penalty of Rs.10,000/- under Rule 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expression business activity. These words/activities refer to the ones which are required for the purpose of or in the interest of running the business and/or improving it, whether under any statutory obligation or otherwise. Since Rent-a-Cab service is exclusively for bringing and dropping the staff engaged in the production activity of the factory the same has to be considered in or in relation to the manufacturing business, as such hiring of cars would not have been required, if the respondents had not been manufacturing excisable goods in their factory. 4. Revenue in its appeal has referred to some decisions of CESTAT wherein the term used in relation to manufacture or clearances of final product have been interpreted. It was submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to come. In view of this it has to be considered as an activity in relation to the manufacture of goods or as activity relating to business and credit should be allowed. 6. I have considered the submission. 7. I find that input services has been defined under Rule 2(l) of Cenvat Credit Rules, 2004 which is reproduced as below:- Input service means any service - used by a provider of taxable service for providing an output service; or used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearances of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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