TMI Blog2015 (9) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... essity because of the location of the factory in a remote area, where if the accommodation is not provided to the staff/workers, the continuous/round the clock manufacturing activity will hamper. Further, the cost towards such construction has also been considered as expenditure in the books of accounts of the respondent. Thus, I am of the opinion that such construction activity is in relation to the business of the respondent, and therefore, service tax paid for accomplishing the purpose of business, merits consideration as input service for the purpose of Cenvat benefit. - respondent is eligible for cenvat credit on the disputed services and, therefore, there is no infirmity in the impugned order - Decided against Revenue. - Excise Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies were available for accommodating their staff/workers.He further submits that in order to maintain continuity in the sugar manufacture, construction of the dormitories/ residential colony within the precinct of the factory is a basic necessity and is also a requirement under Section 47 of the Factories Act, 1948.It is his submission that the cost incurred for construction of the colony/ dormitory have been considered in the accounts of the respondent, and thus, such service should be considered as activities relating to business, and qualify as input service for the purpose of taking Cenvat credit.To justify his above stand, the Ld. Advocate relies on the judgment on Hon ble Bombay High Court in the case of CCE vs Ultratech Cement Ltd. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities relating to business as contained in the definition clause of input service has not been discussed therein, while arriving at the conclusion that the appellant is not entitled to cenvat credit on the construction services. Rather, in the case of Ultratech Cement (supra), the Hon ble Bombay High Court upon analysis of the inclusive part of the definition of input service, have held that the definition of input service is not restricted to services used in or in relation to manufacture of final products, but extends to all services used in relation to the business of manufacturing the final product. In the present case, construction of residential colony/dormitory adjacent to the factory premises was the necessity because of the loc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
