Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 1216 - AT - Service TaxDenial of CENVAT Credit - input service - inclusive part of Rule 2(i) - construction services - Held that:- In the case of Ultratech Cement (2010 (10) TMI 13 - BOMBAY HIGH COURT), the Hon’ble Bombay High Court upon analysis of the inclusive part of the definition of input service, have held that the definition of input service is not restricted to services used in or in relation to manufacture of final products, but extends to all services used in relation to the business of manufacturing the final product. In the present case, construction of residential colony/dormitory adjacent to the factory premises was the necessity because of the location of the factory in a remote area, where if the accommodation is not provided to the staff/workers, the continuous/round the clock manufacturing activity will hamper. Further, the cost towards such construction has also been considered as expenditure in the books of accounts of the respondent. Thus, I am of the opinion that such construction activity is in relation to the business of the respondent, and therefore, service tax paid for accomplishing the purpose of business, merits consideration as input service for the purpose of Cenvat benefit. - respondent is eligible for cenvat credit on the disputed services and, therefore, there is no infirmity in the impugned order - Decided against Revenue.
|