TMI Blog2015 (2) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... facie view, these services would be covered by the "activities relating to business" as these activities have nexus with the manufacturing business of the appellant. As emphasized by Hon'ble Bombay High Court in the case of Ultratech Cement [2010 (10) TMI 13 - BOMBAY HIGH COURT], for categorizing a service as 'input service' covered by Rule 2(l) of Cenvat credit Rule 2004, what is relevant is as to whether it has nexus with the manufacturing business of the appellant in contrast to the nexus with the manufacture of the final product in case of 'Input. Prima facie case in favour of assessee . The requirement of pre-deposit of the Cenvat credit demand, interest and penalty is, therefore, waived for hearing of the appeal and recovery there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the personnel and that the company shall also provide guards at the personnels respective houses according to the circumstances. For complying with this provision in the agreement, the appellant company rented certain residential premises for providing lodging facility to the visiting technical personnel of SMC, though. On the rent for hiring of the premises, Service Tax has been paid, and the Department has allowed the Cenvat credit of that service tax. The Dispute in this case is as to whether the outdoor catering service and house-keeping services availed by the appellant company would be admissible for Cenvat credit. The Cenvat credit taken in respect of these services is Rs . 98,34,077/-. The Department being of the view that thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esidential facilities along with furniture, water supply, cooking facilities etc., to the visiting technical personnel of M/s SMC, Japan, that the judgment of Hon'ble Bombay High Court in the case of Manikgarh Cement is not applicable to the facts, of this case, that in any case, Hon'ble Andhra Pradesh High Court in the case of CCE vs ITC Ltd. reported in 2013 (32) STR 288 ( A.P .) has taken a contrary view holding that the taxable services received for providing the residential facilities to the workers and their maintenance would be eligible for Cenvat credit, that the services received by the appellant are covered by the activities relating to business , that since these services had been received during period prior to 1.4.2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnished western style house with all the necessary furniture, telephone, water supply, cooking facilities, gas supply etc. It is in pursuance of this clause in the agreement that the appellant rented some accommodation for the visiting personnel of M/s SMC, and also received outdoor catering service and house-keeping service. While the Department has permitted Cenvat credit of service tax paid on the rental for the houses, the Cenvat credit of the service tax paid on the house keeping services and outdoor catering services received has been disallowed on the ground that the agreement itself categorized them as welfare . In our view, just because the agreement mentions these activities as welfare , the same do not become welfare activities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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