Bringing workers to factory from homes cannot be treated as input service

Andhra Organics Ltd Vs CCT (CESTAT Hyderabad)

The issue to be decided is whether the appellant is entitled to credit of the service tax paid on the tour operator service used for transporting their employees from their residence to the factory.

Input services on which credit is allowed have to be used by manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products up to the place of removal as per Sec.2 (l) of the CENVAT Credit Rules, 2004.

The question is whethe

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