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2015 (9) TMI 1222 - CESTAT NEW DELHI

2015 (9) TMI 1222 - CESTAT NEW DELHI - 2016 (43) S.T.R. 461 (Tri. - Del) - Cenvat credit - input services - construction services in relation to construction dormitory - Held that:- Although it is alleged in the show cause notice that the dormitory is located outside factory premises but the appellant in reply to the show cause notice has clearly mentioned that this dormitory is constructed within factory premises and the said fact has not been contradicted by the Adjudicating Authority or the f .....

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rea. Therefore, I hold that the construction of dormitory for this purpose of stay of technicians / engineers is integrally connected with the manufacturing activity of the appellant - in the case of ITC Ltd (2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT), the High Court of Andhra Pradesh has held that maintenance of residential colony in the remote area is entitled to take input services credit for the services of maintenance of residential colony as the factory is located in remote area. There .....

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ok Jindal: Appellant is in appeal against the impugned order wherein input service credit on construction services of dormitory was denied to the appellant on the premises that same does not qualify as input service as per Rule 2(1) of the Cenvat Credit Rules, 2004. 2. The brief facts of the case are that appellant is the manufacturer of sugar and molasses. As the factory is located in the remote area and they need technicians / engineers for maintenance of their plant and machinery. Therefore t .....

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erted into the impugned order. Aggrieved from the said orders, appellant is before me. 2. The Ld. Counsel for the appellant submits that the dormitory is constructed within the factory premises for stay of technicians / engineers in their factory as same is located in a remote area and these technicians / engineers are required for repair of machinery and plant. In these circumstances, the requirement of these technicians / engineers is directly connected with the manufacturing activity of the a .....

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his case the employees are staying in factory itself. Therefore, they are entitled to take Cenvat Credit. He further submits that in the case of ITC limited Vs. C.C.E. Hyderabad-2013 (32) STR 288 (AP) , the Hon'ble High Court of Andhra Pradesh has held that maintenance of residential colony is entitle to- take Cenvat Credit. Therefore, appellants are entitled to take Cenvat Credit. He also relied on the decision of Hon'ble High Court of Bombay in the case of Ultra Tech Cement Ltd. Vs. C. .....

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rt of Bombay in the case of Manikgarh Cement (Supra) is applicable to the facts of the case. Therefore, appellant is not entitled to take Cenvat Credit. He further submits that the construction service is not included in the inclusive part of the Rule 2(1) of Cenvat Credit Rule 2004 and the construction services has no nexus with the manufacturing activity of the appellant. 4. Heard the parties. Considered the submissions and perused the records. 5. On perusal of the record, I find that although .....

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