STANZEN TOYOTETSU INDIA PVT. LTD. Vs. COMMR. OF C. EX., BANGALORE-III

JUDGEMENT

(1.) ALL these four appeals are directed against Orders -in -Appeal No. 132/2007 dt. 17 -12 -2007; OIA No. 133 & 134/2007 dt. 17 -12 -2007 & OIA No. 128/2007 dt. 24 -12 -2007 passed by the Commissioner of Central Excise (Appeals -II), Bangalore. Since all these appeals are in respect of the same assessee and issue being the same, they are being disposed off by a common order.

(2.) THE relevant fact that arise for consideration are the appellant herein availed input stage credit of the Service tax amount paid by the service provider of Canteen Services, Rent -a -Cab Services and on the Group Health Insurance Services. The appellant claims that the canteen services, transportation charges for transportation of their employees and the Group Insurance Health Policy for which they have paid Service tax to the service providers, is in or in relation to the manufacturing activity. Both the lower authorities have held that the appellants are not eligible to avail the credit of Service Tax paid by the Service Provider and confirmed the demand and also imposed penalty besides directing the appellants to pay interest. Hence, these appeals.

(3.) THE learned Advocate appearing on behalf of the appellant submits that, the confirmation of the demand and Education Cess; directing to pay interest and imposing penalties, is irregular and incorrect. It is his submission that during the period December 2006 to March 2007, the appellant availed the services of outdoor catering services for providing food to their employees in the factory premises. It is his submission that the said services are provided to the employees who are part and parcel of the manufacturing activity. As regards the Service Tax paid by the service provider for transportation of the employees, it is his submission that it is also in relation to the employees who are part and parcel of.the manufacturing activity. He would rely upon the decision of the Tribunal in the case of Victor Gaskets India Ltd. v. CCE, Pune -I as reported in 2008 (10) S.T.R. 369 and CCE, Nasik v. Cable Corporation of India Ltd. - 2008 (12) S.T.R. 598 (Tribunal) = 2008 (87) RLT 783 (CESTAT -Mum.) for these submissions.