Service Provided by Yoga teacher, Poojari, Cook, Compounder, Nurse have no direct nexus with manufacture

CESTAT, MUMBAI BENCH

JSW Steel Ltd.

V/s.

Commissioner of Central Excise, Thane 

ORDER NO. S/523/12/EB/C-II

APPLICATION NO. E/STAY-1632 of 2011

APPEAL NO. E/1435 of 2011

MARCH 1, 2012

ORDER

S.S. Kang, Vice-President – Heard both sides.

2. The applicant filed this application for waiver of pre-deposit of duty of Rs. 58,55,434/-, interest and penalty. The demand has been confirmed after denying the credit of Service Tax paid on the taxable services of Manpower Recruitment or Supply Agency Service. The credit of Service Tax was denied on the ground that the applicants received the manpower such as Helpers, Asstt. Fitter, Security Guard, Asstt. Operator Technician, Yoga Teacher, Poojari, Gardener, Cook, Compounder, Nurse etc. The credit is being denied in view of the definition of input service as provided under rule 2 of the Cenvat Credit Rules, 2004 as the taxable services are not used in or in relation to manufacture of dutiable final products.

3. The contention is that there is no dispute that the appellant received taxable services and the manpower is required to use in or in relation to manufacture of final product. Therefore, the credit is wrongly denied.

4. The Revenue submitted that the manpower such as Yoga Teacher, Poojari, Cook, Compounder, Nurse, Helper etc. have no nexus with the goods manufactured, therefore, the credit has been rightly denied.

5. Keeping in view the facts and circumstances of the case, we find that the applicants have availed the taxable services and the persons which were supplied like Yoga teacher, Poojari, Cook, Compounder, Nurse, helper etc. have no direct nexus with manufacture of final product. Therefore, prima facie, we find that the applicant has not made out a case for total waiver of pre-deposit of duty. Hence, the applicant is directed to deposit an amount of Rs.15 lakhs within a period of six weeks. On deposit of the said amount, pre-deposit of the balance amount of duty, interest and penalty shall stand waived and recovery thereof stayed during pendency of the appeal.

6. Compliance is to be reported on 15.05.2012.

NF