2017 (5) TMI 872

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..... r otherwise? - Held that: - the credit in respect of construction service of workers quarters in the factory premises of the appellant is admissible input service and the Cenvat credit is permissible - reliance placed in the case of Bajaj Hindusthan Ltd. Versus Commissioner of Central Excise, Meerut [2015 (9) TMI 1222 - CESTAT NEW DELHI], where the credit on construction service and/or service rel .....

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..... re meant for the workers for smooth operation of the factory and is part of employment condition entered into with the workers engaged in their manufacturing activities. He submits that the expenditure incurred towards the construction of residential colony to the workers is an expenditure in relation to the business expenditure and is considered and allowed as business expenditure under Income Ta .....

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..... High Court in another case of Ultratech Cement Ltd. - 2010 (20) STR 577 (Bom) has given interpretation to the scope of inclusion clause of the definition of input service and held that any service used for business activity is admissible input service. Accordingly, in the light of Ultratech Cement Ltd.(supra) construction service of workers quarters in the factory premises, which is rela .....

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..... (219) ELT 122 (Bom) v) Indorama Synthetics (India) Ltd. - 2008 (226) ELKT A181 (SC) vi) Ultratech Cements Ltd. - 2014 (33) STR 501 (Guj) vii) Ultratech Cements Ltd. - 2015 (40) STR 284 (Guj) iii) Mahindra Sona Ltd. - 2016-TIOL-1174-CESTAT ix) Rathi Steel and Power Ltd. - 2015-TIOL-1416-HC-ALL-CX 5. I have carefully considered the submissions made by both the sides. I .....

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..... ed upon by the learned AR, I find that the facts of those cases are different from the facts of the present case. Therefore, in my considered view, the credit in respect of construction service of workers quarters in the factory premises of the appellant is admissible input service and the Cenvat credit is permissible. The impugned order is set aside and the appeal is allowed. (Pronounced in C .....

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