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2017 (1) TMI 1280 - CESTAT, BANGALORECENVAT credit - Guest House Maintenance charges - Colony Up-keeping charges - Held that: - since the factory is located at a remote area in Gulbarga District of Karnataka and there is no nearby township where the employees of the company can get accommodation therefore it becomes necessary for the appellant to provide a Guest House as well as residential colony for its employees and all these things are directly linked to the manufacturing activity - reliance placed in the case of DCM Shriram Consolidated Ltd. [2015 (2) TMI 45 - CESTAT NEW DELHI], where the Tribunal has allowed the cenvat credit on Maintenance of Guest House by observing that up-keeping of guest house which is adjacent to the factory premises is necessary business requirement inasmuch as the factory is located outside the said complex and similarly the maintenance of residential premise has also been held to be associated with the business activity. Colony Up-keeping charges - Held that: - reliance placed in the case of COMMISSIONER OF CUS. & C. EX., HYDERABAD-III Versus ITC LIMITED [2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT], where it was held that the staff colony being directly and intrinsically linked to its manufacturing activity could not therefore be excluded from consideration - 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. Credit allowed - appeal allowed - decided in favor of assessee.
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