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2010 (3) TMI 402 - CESTAT, MUMBAICenvat Credit of Service Tax- The respondent availed credit of Service Tax of Rs. 9,78,547/- on the basis of construction of ‘compound wall’. It was alleged that construction of compound wall was not falling under the definition of ‘input service’ as the respondents have not used the service for providing any output service as well as the said service is not used by the respondents directly or indirectly in or in relation to the manufacture of final products and for the clearances of final products. Held that- the construction of compound wall is necessary to run the factory or not depends on the activity taken over by the manufacturer or as per their requirement for manufacturing activity. Thus, the compound wall is an integral part of the factory. Hence, the credit taken over the input service by the respondent on the construction of the compound wall is eligible to the respondent.
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