TMI Blog2010 (10) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... the business activity of the assessee and not welfare activities undertaken by the assessee - 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 and therefore, the Tribunal was not justified in holding that the services such as repairs, maintenance and civil construction rendered at the residential colony 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. - 22 OF 2008 - - - Dated:- 11-10-2010 - J P Devadhar and A B Chauhari, JJ JUDGEMENT Per: J P Devadhar: 1. The Revenue has filed this appeal against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o by his order dated 20th February, 2007 rejected the appeal and upheld the order-in-original passed by the Deputy Commission, Central Excise Division, Chandrapur. 5. Being aggrieved by the aforesaid order, the respondent-assessee filed an appeal before the Customs, Excise Service Tax Appellate Tribunal and the Tribunal by the impugned order dated 04-12-2007 allowed the appeal and held that the respondent-assessee is entitled to a CENVAT credit on the service tax paid in respect of repairs, maintenance, civil construction, clearing service etc. used at the residential colony of the respondent-assessee. 6. Learned Counsel appearing on behalf of the appellant- Revenue submitted that in the light of the decision of the Hon'ble Apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we hold that unless the nexus is established between the services rendered and the business carried on by the assessee, the benefit of CENVAT credit is not allowable. In the present case, in our opinion, 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 and therefore, the Tribunal was not justified in holding that the services such as repairs, maintenance and civil construction rendered at the residential colony 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. 10. Accordingly, the question set out hereinabove is an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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