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TMI Blog2011 (5) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ilized in residential colony of respondent is admissible when such services are not related to manufacture directly or indirectly in or in relation to the manufacture of final products and especially when the service rendered in residential colony of the factory are not covered in the definition of 'input service' defined under rule 2(1) of Cenvat Credit Rules, 2004? 2. On 13.1.2011, this Court issued notice of final disposal passing following order: "1. Heard Mr. Y.N. Ravani, learned senior standing counsel for the appellant. 2. It is pointed out that the Tribunal has placed reliance upon an earlier decision in case of Manikgarh Cement Vs. Commissioner of Central Excise & Customs, Nagpur, 2008 (9) STR 554 (Tribunal-Mumbai). It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature." 4. Counsel for the respondent conceded that the issue is one of recurring nature. In that view of the matter, instead of closing the appeal merely on the ground of smallness of claim, we have proceeded to hear both sides on merits of the issues presented before us. 5. Respondent-assessee is engaged in manufacture of soda ash. The Assessing Officer noticed that the assessee had taken Cenvat Credit for providing security services in residential colony maintained by the Company for its workers. The Assessing Officer, therefore, considered the entitlement of the assessee to such Cenvat Credit along with other contentious issues. After issuance of show cause notice and hearing the assessee, by the order in original dated 12 th Decembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable on the spot in order to maintain continuity in the process of cement manufacture, has not been disputed. Therefore, service provided is relatable to business and credit of service tax is admissible as the service in respect of repairs and maintenance, civil construction in relation to the residential colony are input services. My view find support from the Tribunal's order in the case of Indian Rayon & Industries Limited v. CCE, Bhavnagar - 2006 (4) S.T.R. 79 holding that credit is admissible on service tax paid on mobile phones provided to employees to carry out business transactions. Credit has been held to be admissible even though the telephones are not installed within the factory premises. The decisions of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CCE, Nagpur v. Manikgarh Cement, 2010 (20) STR 456 (Bom.). He pointed out that the Tribunal in the impugned judgment has placed reliance on a decision of Bombay Tribunal in the case of Manikgarh Cement v. Commissioner of C.Ex. & Customs, Nagpur reported in 2008(9) STR 554 (Tri.-Mumbai) which was reversed by the Bombay High Court in the case Manikgarh Cement (supra). Counsel also relied on the decision of the Apex Court in the case of Maruti Suzuki Ltd v. CCE, Delhi, 2009 (240) ELT 641 (SC). 8. On the other hand, counsel for the respondent assessee contended that the definition of the term 'input service' contained in section 2(l) of the Cenvat Rules is sufficiently wide to include range of services used by the manufacturer for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relation to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking,credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;" 10. Definit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al product. This is also the view of the Bombay High Court in the case of Manikgarh Cement (supra). 12. We may notice that the Apex Court in the case of Maruti Suzuki Ltd. (supra) was of the opinion that the electricity generated by the assessee and cleared to grid for distribution would not be part of manufacturing activity and be categorized as input used in manufacture of final product. We are conscious that the said decision of the Apex court is referred to Larger Bench. However, at this stage, the ratio laid down therein prevails. 13. In the case of Ultra Tech Cement Ltd. (supra), on which counsel for the respondent has placed heavy reliance, the Bombay High Court was considering outdoor catering service provided by the employer for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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