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2015 (10) TMI 2219 - AT - Service TaxDenial of CENVAT Credit - input services - construction of dormitory - nexus with manufacturing activity - Held that:- Though the issue involved in the said decided case was with regard to establishing the nexus between the services rendered and the business carried on by the assessee, but the phrase ‘activities relating to business’ as contained in the definition clause of input service has not been discussed therein, while arriving at the conclusion that the appellant is not entitled to cenvat credit on the construction services. The Hon’ble Bombay High Court in the case of CCE vs Ultratech Cement Ltd., reported in [2010 (10) TMI 13 - 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 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 manufacturing activity will hamper. Further, the cost towards such construction has also been taken into consideration in the books of accounts of the appellant. Thus, I am of the opinion that such construction activity is in relation to the business of the appellant, and therefore, service tax paid for accomplishing the purpose of business, will merit consideration as ‘input service’ for the purpose of Cenvat benefit. - Impugned order is set aside - Decision in the case of assessee's own previous case followed [2015 (9) TMI 1223 - CESTAT NEW DELHI] - Decided in favour of assessee.
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