Case Law Details
Dassault Systemes Simulia Private Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that CENVAT Credit towards service tax paid on meal coupons and group insurance for employees is duly available as input service.
Facts- It is contended that the appellant had availed cenvat credit on input services provided by M/s. Sodexo SVC India Private Ltd., Mumbai under Business Support Service for the meal coupons. Credit was also availed on insurance services provided by United India Insurance Ltd. which provided group insurance for employees.
The department was of the view that these services are not having any nexus with the output services provided by the appellants and hence not eligible for credit.
Conclusion- Held that during the relevant period (prior to 01.04.2011) the definition of “input services” had a wide ambit as it included the phrase “activities relating to business”. Thus, almost all the services were covered within the definition of “input services” if used for providing the output services. There is nothing to show that the said services were not used for the employees of the appellant-company. The Tribunal in the case of Ford had considered the issue and held that the credit is eligible. We hold that appellant is eligible for credit and the disallowance of credit is not sustainable and requires to be set aside which we hereby do.
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