TMI Blog2014 (7) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... E/276/2012-SM, E/371/2012-SM - - - Dated:- 20-12-2013 - P K Das, J. For the Appellant : Mr Rohit Sharma, Adv. For the Respondent: Mr P Arul, Superintendent (AR) JUDGEMENT Per: P Das: A common issue involved in these appeals and therefore, both are ta-en up together for, disposal. 2. The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Cement classifiable under Chapter 35 of the CETA, 1985. They availed CENVAT credit on maintenance and repair charges incurred on the residential premises. The adjudicating authority denied the credit of ₹ 94,443/- for the period February 2009 to August 2010 on the ground that the expenses incurred by the appellants has no connect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted in the case of Ramala Sah-ari Chini Mills Ltd. Vs. CCE - 2010 (260) ELT 321 (SC). He further submits that the Hon'ble Bombay High Court in the case of CCE Vs. Ultratech Cement Ltd. allowed the credit of outdoor catering after considering Maruti Suzu-i (supra). 6. After hearing both sides and on perusal of the records, I find that the Hon'ble Andhra Pradesh High Court in the case of ITC (supra) allowed input service credit on maintenance of the staff colony. The relevant portion of the said decision is reproduced below:- 9. The Commissioner's Order-in-Appeal dated 27.05.2008 reflects that he accepted that the efficiency of the employees of an organization would be dependent on various factors, one such being the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Manic-garh Cement (supra) after considering the decision of the Hon'ble Supreme Court in the case of Maruti Suzu-i (supra) disallowed the input service credit on repair and maintenance of rendered at the residential colony as it is not integrally connected with business of assessee. The relevant portion of the said decision is reproduced below.- 8. In our opinion, establishing a residential colony for the employees and rendering taxable services in that residential colony may be a welfare activity underta-en while carrying on the business and such an expenditure may be allowable under the Income Tax Act. However, to qualify as an input service, the activity must have nexus with the business of the assessee. The expressi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned AR that the decision of the Hon'ble Supreme Court in the case of Maruti Suzu-i Ltd. (supra) was not placed before the Hon'ble Andhra Pradesh High Court in the case of ITC Ltd. (supra). The reference to the Larger Bench by the Hon'ble Supreme Court has no consequence at this stage as the Hon'ble Bombay High Court and Hon'ble Gujarat High Court had followed this decision as above. Respectfully following the decision of the Hon'ble Bombay High Court in the case of Mani-garh Cement (supra) and the Hon'ble Gujarat High Court in the case of Gujarat Heavy Chemicals Ltd. (supra), the input service credit on repair and maintenance of the residential colony of the staff is not admissible. Accordingly, I do not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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