Cenvat Credit on Services availed for maintenance of Health Centre at factory

Service availed for maintenance of Health Centre at factory as per statutory rules is eligible for credit

CESTAT, NEW DELHI BENCH

Binani Cement Ltd.

v.

Commissioner of Central Excise & Service Tax, Jaipur-II*

RAKESH KUMAR, TECHNICAL MEMBER

FINAL ORDER NO. A/53222/2014-SM(BR)
APPEAL NO. E/56105/2013-(SM)

AUGUST  12, 2014 

Rule 2(l) of the Cenvat Credit Rules, 2004 - Cenvat Credit - Input service - Manpower Recruitment and Supply Services - Period March, 2010 to December, 2010 - Assessee, a manufacturer of cement, sourced trained persons from manpower supply agents : (a) for maintaining medical/health centre at factory at Sirohi, as per Rajasthan Factory Rules; (b) for procurement of inputs at Udaipur project office and Mumbai corporate office - Assessee took credit of such manpower supply services, which was denied on ground that it had no nexus with manufacture - HELD : Unless assessee complies with Rajasthan Factories Rules, it would not be allowed to carry on manufacturing; hence, service of receiving trained medical personnel for maintaining health centre was in or in relation to manufacture - As regards services availed at Udaipur/Mumbai, it was found that recruited persons were used in connection with activities relating to business - Hence, both were eligible for input service credit [Paras 6 to 8] [In favour of assessee]