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2019 (1) TMI 167 - AT - Central ExciseCENVAT Credit - input service - construction service - period from April 2005 to October, 2006 - denial on account of nexus - whether the construction of staff colony in the present case is a welfare activity of the appellant or is an activity in relation to its business? - Held that:- It is very much apparent from the reply of the appellant as was given to the show cause notice that the impugned construction has been made within the factory premises of the assessee/ appellant and the very object of the construction of these buildings for staff and labour in factory compound itself is to ensure the availability of the labour at the spot of manufacture for maintaining continuous manufacturing process of the plant. Thus, the said construction is opined to be an activity intended to seek enhancement of the productivity of the plant. Commissioner (Appeals) has failed to appreciate the fact on record creating nexus between the impugned input service and the business activity of the appellant and has wrongly held the same to be a welfare activity - The construction of houses since has been raised with the main objective of enhancement of the business, the same is held as the input service were upon the appellant is entitled to avail the Cenvat Credit. Appeal allowed - decided in favor of appellant.
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