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2011 (5) TMI 132 - HC - Service TaxInput Service – cenvat Credit – security service at residential quarters of workers – scope of input services – Rule 2(l) of CCR - Respondent assessee, manufacturer of soda ash, has provided residential quarters for its workers. - In such residential quarters, the assessee also provided security services. Can such security services be stated to be service used by the manufacturer directly or indirectly in or in relation to the manufacture of final product? – Held that: - Our answer has to be in the negative. We do not see any connection between the security service provided by the manufacturer in the residential quarters maintained for the workers as having any direct or indirect relation in the activity of manufacture of the final product. This is also the view of the Bombay High Court in the case of Manikgarh Cement (2010 -TMI - 78189 - BOMBAY HIGH COURT). - the act of providing residential quarters by the manufacturer to its employees was voluntary. Providing further security service in such residential quarters was also an act voluntary in nature. – Benefit of cenvat credit denied.
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