2017 (7) TMI 191

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... -keeping service in their residential colony. Credit was denied on the ground that these services would not fall within the purview of definition of input services in rule 2(l) of CENVAT Credit Rules, 2004. The first appellate authority had upheld the order of original authority. 2. It is the contention of Learned Counsel for appellant that, the facilities though referred to as guest house and residential colony, are accommodation for staff temporarily deputed to the manufacturing facility which is situated at Ratnagiri. Flowing from this contention, it is her submission that staff are sent to the manufacturing facility for activities in connection with, and pursuant to, manufacturing operations of the appellant and that the tax on service .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e any submissions to indicate that these services had any nexus with their manufacturing activity. Reliance is placed in the decision of the Tribunal in IFB Industries Ltd v. Commissioner of Central Excise, Bangalore [2013 (32) STR 650 (Tri-Bang)], which has laid down that positive evidence is required to substantiate the claim of the asessee: "9. As regards guest house maintenance service, the claim of the appellant is that it was used for accommodating business guests and conducting business meetings. This claim is an ipse dixit with no evidentiary support. Ordinarily, a guest house is meant to house guests. Business meetings are ordinarily held in the conference room of the manufacturing company. If that be so, some positive evidence is .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t find any such assertion. The nexus of the production facility to the guest house and residential colony is a question of fact. This needs to be ascertained and can be done only at the level of the original authority. I, therefore, set aside the impugned order and remand the matter back to the original authority to enable appellant to be afforded an opportunity to establish that the guest house and residential colony are in some manner connected to the production process and thereby entitled to claim tax paid on input services deployed at the facilities as CENVAT credit. Considering that this matter has been pending in the Tribunal for the last six years, the adjudicating authority shall dispose of the dispute within three months from the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X