TMI Blog2015 (6) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... r, penalty is set aside - Decided partly in favour of assessee. - Appeal No. E/1834/11 & E/2014/12-Mum - Final Order Nos. A/378-379/2015-WZB/SMB - Dated:- 13-2-2015 - P K Jain, Member (T),J. For the Appellant : Shri Saha Subrato, Dy GM For the Respondent : Shri N N Prabhudesai, Supdt (AR) ORDER Per: P K Jain: The brief facts of the case are that the appellant is having a housing colony and club room attached to their manufacturing unit at Igatpuri, Nashi. They have availed credit of service tax paid on security services provided at the residential colony and club room, repair of mixer used in the canteen, civil work done at the colony, furniture/wooden partition done for VIP rooms and telephone lines installed at r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory at the relevant place. The authorised representative of the appellant further stated that they had set up the said unit in 1983 and 1989 when there were no facilities available in the area and it was absolutely necessary for them to have housing colony and club facility and in view of the Hon'ble High Court judgment in the case of Ultra Tech Cement Ltd. (supra) as also the judgment of the Hon'bel High Court of Andhra Pradesh in ITC reported in Central Excise Appeal Nos.177 And 178 OF 2011, they are entitled to the Cenvat credit. Ld. Authorised Representative of the appellant firm further stated that in this case no penalty is imposable in view of this Tribunal's decision in the case of Bhushan Steel E/53-54/2007-Mum and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess activity of the assessee and not welfare activities undertaken by the assessee. 9. Applying the ratio laid down by the Hon'ble Apex Court in the case of Maruti Suzuki Limited Vs. Commissioner of Central Excise, Delhi (Supra), we hold that unless the nexus is established between the services rendered and the business carried on by the assessee, the benefit of CENVAT credit is not allowable. In the present case, in our opinion, rendering taxable services at the residential colony established by the assessee for the benefit of the employees, is not an activity integrally connected with the business of the assessee and therefore, the Tribunal was not justified in holding that the services such as repairs, maintenance and civil constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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