COMMISSIONER OF C. EX. Vs. RANE NKS STEERING SYSTEMS LTD.
LAWS(CE)-2015-3-72
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 23,2015

COMMISSIONER OF C. EX. Appellant
VERSUS
Rane Nks Steering Systems Ltd. Respondents

JUDGEMENT

ASHOK JINDAL,MEMBER (J) - (1.)REVENUE is in appeal against the impugned order wherein the ld. Commissioner (Appeals) has allowed input service credit on construction service, building construction consultancy service and rent -a -cab service. The contention of the Revenue is that the adjudicating authority has relied on the decision of VMT Spinning Co. Ltd. -, 2008 (232) E.L.T. 169 (A.A.R.) to say that Cenvat credit of the construction is not available. It is further contended on behalf of the Revenue that rent -a -cab service, the input service credit is not available, as same have no nexus with the manufacturing activity.
Heard the ld. AR considered the submissions.

(2.)I have also perused the impugned order wherein the ld. Commissioner (Appeals) has categorically gave a finding that the construction service have been used by the respondent for construction of factory building only. And as per Rule 2(1) of the Cenvat Credit Rules, 2004 in the inclusive part of the definition clearly states that service used for setting up of a factory is an input service, therefore, the appellant is entitled to take Cenvat credit. Therefore, the ld. Commissioner (Appeals) has rightly allowed the Cenvat credit on construction service. Further, I find that rent -a -cab service has been used by the respondent for ferrying employees from the residence to factory and vice versa and sometimes for official purpose for which they are entitled to Cenvat credit as per the decision of Hon'ble High Court of Bombay in the case of Ultratech Cement Ltd. - : 2010 (20) S.T.R. 577 (Bom.) : 2010 (260) E.L.T. 369 (Bom.). Therefore, I do not find any infirmity with the impugned order, the same is upheld. Appeal filed by the Revenue deserves no merits and consequently dismissed.
(Order dictated in the open Court)

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