The Chennai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that the on-site emergency medical service set up at the factory of Saint Gobain Galss India Limited could not fall under Input service.
Saint Gobain Glass India Limited, manufacturing ‘Float Glass,’ commenced commercial production in their newly set up factory at Bhiwadi on 26.03.2014. The factory’s setup began before 01.04.2011 and completed in March 2014.
The appellant availed CENVAT Credit for Service Tax paid on input services from 01.04.2011 until the commencement of commercial production. The department argued that services used for setting up the factory after 01.04.2011 were ineligible for credit due to changes in the definition of “input service.”
Disagreeing with the department’s view, the appellant appealed to the Commissioner (Appeals) and later to the tribunal. The appellant’s counsel argued that services received before production commencement fell under “Erection, Commissioning and Installation Service.” They contended eligibility for credit on services directly or indirectly related to manufacturing.
The Department’s representative argued that services before production commencement couldn’t be considered in relation to manufacture. Post 01.04.2011, the definition of input service excluded the words “setting up” of a factory.
The tribunal observed that the appellant availed credit on “Emergency Medical Services” for on-site use. The bench disallowed Cenvat credit on Emergency Medical Services, stating they weren’t proved for personal consumption and couldn’t be considered eligible input services.
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