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2015 (2) TMI 917 - AT - Central ExciseCenvat credit on Outdoor catering Service and House Keeping Service - Welfare activities as mentioned in agreement or Covered under Input service definition as activities relating to business - Held that:- In our view, just because the agreement mentions these activities as "welfare", the same do not become welfare activities, as from the language of the agreement, it is clear that it is an obligation of the appellant company to provide each visiting personnel of M/s SMC, Japan, with furnished western style house with all the facilities including cooking facility. Therefore, in our prima facie view, these services would be covered by the "activities relating to business" as these activities have nexus with the manufacturing business of the appellant. As emphasized by Hon'ble Bombay High Court in the case of Ultratech Cement [2010 (10) TMI 13 - BOMBAY HIGH COURT], for categorizing a service as 'input service' covered by Rule 2(l) of Cenvat credit Rule 2004, what is relevant is as to whether it has nexus with the manufacturing business of the appellant in contrast to the nexus with the manufacture of the final product in case of 'Input. Prima facie case in favour of assessee . The requirement of pre-deposit of the Cenvat credit demand, interest and penalty is, therefore, waived for hearing of the appeal and recovery thereof is stayed. - The stay applications are allowed.
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