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2016 (8) TMI 1060 - AT - Central ExciseCenvat credit - services availed for construction and repair of the workers quarters - Held that:- Hon’ble Bombay High Court in the case of Commissioner of Central Excise, Nagpur vs. Manikgarh Cement [2010 (10) TMI 10 - BOMBAY HIGH COURT] has held that rendering taxable services at the residential colony established by the assessee for the benefit of the employees, is not an activity integrally connected with the business of the assessee, therefore, do not constitutes input service so as to claim credit of service tax paid on such services under Rule 2(l) of the CENVAT Credit Rules, 2004. In view of the above observations Cenvat Credit of services used in maintenance, repair and civil construction used in the residential colony of the appellant is not admissible. Cenvat credit - utilization of items in making of support structures of the machinery - Held that:- in view of the decision of Hon’ble Allahabad High Court in the case of Bajaj Hindusthan Ltd. v. UOI [2013 (9) TMI 24 - ALLAHABAD HIGH COURT], the Appellant is not eligible to credit on the items used in making of the support structures for the machines. It has also been admitted by the Appellant before the first appellate authority that Appellant does not have any evidence to the effect that items are used in the maintenance and repairs of capital goods. Imposition of penalty - Held that:- it is observed that admissibility of Cenvat Credit on the impugned inputs and services has remained a disputable point. Therefore, penalty imposed by the lower authorities upon the appellant is not justified and is set aside when on the issue contrary case laws were existing. - Decided partly in favour of assessee
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