CCE Vs. SUZUKI POWERTRAIN INDIA LTD.

JUDGEMENT

(1.) IN this case, the Revenue has filed an Appeal aggrieved by the order of the Commissioner (Appeals) allowing CENVAT credit on two services viz. catering service used in canteen within the factory premises of the Respondent and services of tour and travel operators. The amounts of credit involved are Rs. 2,07,085/ - for catering service and Rs. 1,41,532/ - on tours and travel. The ld. DR argues that as per the definition of input services at Rule 2(l) of Cenvat Credit Rules any service will qualify as "input service" only if clear nexus between the service and the final products of the manufacturer is established. He also argues that it has to be clearly demonstrated that the cost of such service forms part of the cost of final product. He submits that the order of Commissioner (Appeals) does not deal with these issues.

(2.) IN the case of tours and travels he argues that the service has no nexus with manufacturing activity. Such service could have been used for leisure of the employees or for any other purpose. It is pointed out that the purpose for which the service was used has not been explained in the reply to Show Cause Notice or in the submissions made before the Commissioner (Appeals). It is also argued that there is no way to know whether the cost of such tour and travels were recovered from the persons actually using the service. Therefore, ld. DR argued that Cenvat credit allowed by the Commissioner (Appeals) on either of the services is not legal and proper.

(3.) IN the case of tours and travels, his submission is that this service was utilised for bringing the employees from their residence to factory and back. This also is integrally connected with the manufacture of final product and therefore credit of tax paid on such service should be allowed. He relies on the decision of this Tribunal in the case of CCE, Vadodara v. Haldyn Glass Gujarat Ltd. reported in : 2009 (240) ELT 729 and also the decision in CCE, Hyderabad v. Deloitte Tax Services India Pvt. Ltd. reported in : 2008 (11) STR 266.