TMI Blog2010 (12) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... resh decision on the issue in accordance with law after considering the Honrable High Court’s judgment in Ultratech Cement Ltd. case (2010 -TMI - 78203 - BOMBAY HIGH COURT ) - E/74/10 - A/57/2011-WZB/C-IV/SMB - Dated:- 23-12-2010 - Mr. P.G.Chacko, (JUDICIAL) Shri S.S.Katiyar, SDR for Appellant Shri Bhavik Dave, C.A. for Respondent Per : P.G.Chacko In this appeal filed by the Revenue, the short question to be considered is whether the lower appellate authority was right in allowing CENVAT credit of the service tax paid on certain input services, to the respondent for utilization in payment of service tax on their output services. The respondent runs a Hotel at Shirdi, (Ahmednagar Dist) where they availed various input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit on the input service. It was further observed that there was no mention of nexus in the definition of input service under Rule 2(l) ibid. Accordingly, the appellate authority set aside the order of adjudication. Hence the present appeal of the Revenue. 2. According to the appellant, the words used in the definition of input services under Rule 2(l) very much required an output service provider to establish nexus between the output service and input service on which credit was proposed to be taken. It is submitted that the word used appearing in the definition indicates the nexus. It is further submitted that mere inclusion of the cost of input services in the business expenses of the hotel would not per se entitle them to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of manufacturing the final product would qualify as input service for the manufacturer. In the said case, the Bench clarified the judgment rendered in the case of Coca Cola India Pvt. Ltd. (supra). When applied to the present case involving output service provider, the judgment of the Honorable High Court in Ultratech Cement case (supra), would mean that the service provider should establish an integral connection between the output services and the activity/service on which CENVAT credit is proposed to be taken under Rule 3 (1) read with Rule 2(l) of the Cenvat Credit Rules 2004. The benefit of the judgment of the High Court in Ultratech Cement Ltd. case was not available to the lower authorities in the present case. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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