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M/s ISMT Ltd. Versus Commissioner of Customs And Central Excise, Aurangabad

2015 (40) S.T.R. 596 (Tri. - Mumbai) - Denial of CENVAT Credit - security service - services appears to have not used/consumed exclusively for the manufacture of excisable goods - Held that:- The guest house is used for lodging of the employees, outside auditors which performing their service to the appellant's factory. Nothing is available on record to show that guest house is used for any other purpose. In view of this fact, since guest house used for the stay of employee, auditors which has d .....

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case, the ratio of both the judgments are squarely applicable in the appellant's case also. - In the present case no such material was available that guest house was available for the personal needs of the employee therefore judgment of MRF Ltd. is distinguished - in facts and circumstances of the case, security service provided to the guest house in the factory is admissible input service, therefore I set aside the impugned order - Decided in favour of assessee. - Appeal No. E/1315/10-MUM - Fi .....

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pellant. The fact of the case is that the appellant has availed Cenvat Credit of ₹ 31,581/- in respect of security service provided to guest house of appellant company located near by their factory. The show cause notice dated 12/11/2009 was issued wherein proposed denial of Cenvat Credit on the ground that said services appears to have not used/consumed exclusively for the manufacture of excisable goods or during the course conducting of business and as seen from the nature of the service .....

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appellant hence the appellant is before me. 2. Ms. Sparsh Prasad, Ld. Counsel for the appellant submits that guest house is used for the stay of company employee and auditors who conduct audit of the factory records therefore it is related to factory activity. She submits that the security service which is subject matter is used for security of guest house and therefore it is admissible input service in terms of definition of input service provided under Cenvat Credit Rules, 2004. She placed re .....

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, Ld. Asstt. Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that the security provided to the guest house has no nexus with production of the goods therefore the same does not qualify as input service in terms of definition of input service provided under Cenvat Credit Rules, 2004. In support of his argument he placed reliance on following judgments: (a) Commissioner of C.Ex. & Customs Vs. Gujarat Heavy Chemicals Ltd. [2011 (2 .....

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