TMI Blog2010 (11) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on input service for paying excise duty on manufactured goods in the light of the Hon’ble Supreme Court’s decision in the case of Maruti Suzuki Ltd. v. CCE Held that: when the laid down tests are applied to the impugned services, it is clear that they have no nexus with the manufacturing of the finished goods viz., cement and hence, the respondents are not entitled to credit of service tax paid on such services - The impugned Order in Appeal is set aside - The duty demand and the demand of interest are concerned - Penalty imposed by the original authority, the same is set aside considering the disputed nature of the issue involved. - ST/307/2010 - 1170/2010 - Dated:- 4-11-2010 - Dr. Chittaranjan Satapathy, JJ REPRESENTED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd Shri R. Srinivasan, Ld. Consultant appearing for the respondents who states that the respondent s factory is in a remote area and unless the workers are provided with a residential colony and other amenities, the factory cannot run. Hence, the services provided in relation to the residential colony should be considered as essential for the activity of manufacture and the credit should be allowed. 4. After hearing both sides, I find that the Tribunal s order in the case of CCE, Nagpur v. Manikgarh Cement (supra), relied on by the lower appellate authority to grant relief to the respondents has been set aside by the Hon ble Bombay High Court and hence, the basis of allowing relief to the respondents no longer exists. Besides, the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afore-cited decisions of the Bombay high Court in the case of CCE, Nagpur v. Manikgarh Cement (supra) and the decision of this Bench in the case of CCE, Chennai v. Sundaram Brake Linings (supra) when the laid down tests are applied to the impugned services, it is clear that they have no nexus with the manufacturing of the finished goods viz., cement and hence, I am of the view that the respondents are not entitled to credit of service tax paid on such services. Accordingly, the impugned Order in Appeal is set aside and the impugned Order in Original is restored in so far as the duty demand and the demand of interest are concerned. However, as regards the penalty imposed by the original authority, the same is set aside considering the disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
