‘Rent-a-cab service’ for transportation of staff from railway station to container freight station run by assessee is eligible input service

CESTAT, MUMBAI BENCH

Allcargo Global Logistics Ltd.

Versus

Commissioner of Central Excise, Raigad

Order Nos. A/273/2012/SMB/C-IV & S/452/2012/SMB/C-IV
Application No. ST/STAY/1258 OF 2012
Appeal No. ST/382 OF 2012

SEPTEMBER  7, 2012

ORDER

1. The appeal and stay application are directed arising out of Order-in-Appeal No. US/206 & 207/RGD/2012 dated 30.03.12 passed by the Commissioner of Central Excise (Appeals), Mumbai II.

2. The issue relates to eligibility to CENVAT credit of the service tax paid on ‘rent-a-cab service’ for transportation of staff from the railway station to the container freight station run by the appellant, M/s. Allcargo Global Logistics Ltd.

3. The ld. Counsel for the appellant submits that the issue is already covered by the decision of the Hon’ble High Court of Karnataka in the case of CCE v. Stanzen Toyotetsu India (P.) Ltd. [2011] 32 STT 244 and CCE v. Bell Ceramics Ltd. [C.E.A. No. 114 of 2010, dated 15-9-2011] wherein the Hon’ble High Court held that service tax paid on a rent-a-cab service for transportation of employees is an eligible input service under Rule 2(l) of the CENVAT Credit Rules, 2004. Accordingly, she prays for allowing the appeal.

4. The ld. AR appearing for the revenue fairly concedes that the issue involved herein has already been decided by the Hon’ble High Court in the aforementioned cases.

5. After hearing both sides, I am of the view that the appeal itself can be disposed of at this stage. Therefore, after dispensing with the requirement of pre-deposit of the dues, I take up the appeal for disposal.

5.1 The issue in the present case is whether service tax paid on ‘rent-a-cab service’ for transportation of staff from Vashi railway station to the container freight station run by the appellant is an eligible input service under Rule 2(l) of the Rule or not. The Hon’ble High Court of Karnataka in the case of Stanzen Toyotetsu India (P.) Ltd. (supra) and Bell Ceramics Ltd. (supra) has held that these services are eligible input service under CENVAT Credit Rules, 2004 and CENVAT Credit o the service tax paid thereon is available. Respectfully, following these decisions, I allow this appeal with consequential relief, if any. The stay application is also disposed of.

NF