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2016 (2) TMI 862 - AT - Central ExciseInput credit of service tax - Cenvat credit of service tax - Cenvat credit in respect of services utilized for the maintenance or repairs of residential buildings/ quarters - as per Revenue these services will not fall under the ambit of "input service" in terms of Rule 2 (l) of Cenvat Credit Rules, 2004, notice dated 19/8/11 was issued to disallow and recover the credit - Held that:- Similar issue was under consideration by in the case of CC & CE., Hyderabad - III vs. ITC Limited (2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT ) wherein held that staff colony provided by the company, being directly and intrinsically linked to its manufacturing activity could not therefore be excluded from consideration of credit. Consequently, the services which were crucial for maintaining the staff colony, such as lawn mowing, garbage cleaning, maintenance of swimming pool, collection of household garbage, harvest cutting, weeding etc. necessarily had to be considered as "input services" falling within the ambit of Rule 2 (l) of the Cenvat Credit Rules, 2004. Cenvat credit of service tax paid on various services which were utilized for residential colony/township of the appellant's factories are eligible for credit. - Decided in favour of assessee.
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