Cenvat credit on guest house – HC set aside CESTAT Formula

ACG Associated Capsules P. Ltd. Vs CCE (Bombay High Court) We notice that the term ‘input service’ contained in CENVAT Credit Rules 2004, contains certain exclusion clause. Clause (C), inter alia, excludes travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily, for personal use or consumption of any employee. Accordingly, if the guest houses were utilized by the Assessee for extending benefit to the employees, for the personal use or consumption, the Assessee was not entitled to avail CENVAT credit thereof. T...