Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 593 - AT - Central ExciseEntitlement of Cenvat Credit – construction activity - AR argued that both construction of workers quarters and vastuwall have no relationship with the manufacturing activity and, therefore, Cenvat Credit with respect to construction of workers quarters and vastuwall is not admissible. Held that - applying the ratio laid down by the Hon’ble Apex Court in the case of Maruti Suzuki Limited vs. CCE, Delhi [2009 (8) TMI 14], we hold that unless the nexus is established between the services rendered and the business carried on by the assessee, the benefit of CENVAT Credit is not allowable. It is held that workers quarters and the vastuwall made inside the factory have no relationship with the manufacturing activity of the appellants and accordingly credit taken with respect to construction of same will not be covered within the definition of input service as defined under Rule 2(1). Matter remanded to the Original Adjudicating Authority for quantification of the above demand. So far as imposition of penalty is concerned, as issues were under litigation. Therefore, penalty under Rule 15(2) read with Section 11AC cannot be invoked and is accordingly set-aside.
|