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2014 (12) TMI 1216 - AT - Central ExciseInput service credit on construction services of dormitory - denial of claim on the premises that same does not qualify as input service as per rule 2/N of the Cenvat Credit Rules, 2004 - Held that:- It is alleged in the show cause notice that the dormitory is located outside factory premises but the appellant in reply to the show cause notice has clearly mentioned that this dormitory is constructed within factory premises and the said fact has not been contradicted by the Adjudicating Authority or the first appellate authority. In these circumstances, it is held that dormitory is located within the factory and same can be verified by the department on visiting the factory premises. As the dormitory is located within the factory and the use of the dormitory is for the technicians / engineers for their stay in the factory itself which is required for maintenance of plant and machinery and these technicians / engineers should be available immediately as the factory is located in a remote area. Therefore, hold that the construction of dormitory for this purpose of stay of technicians / engineers is integrally connected with the manufacturing activity of the appellant. Therefore, the credit is available as that service has been availed in the business of manufacturing activity. In these circumstances hold that as construction of dormitory is an integral part of the manufacturing activity of the appellant, the appellant is entitled to take Cenvat Credit on construction services. - Decided in favour of assessee
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