TMI Blog2018 (3) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... al) Ms. Sukriti Das, Advocate for the Appellant. Shri K. Poddar, Authorized Representative (DR) for the Respondent. ORDER Per. Anil Choudhary The issue involved herein is the admissibility of input service credit in respect of security services deploy at the residential colony situated outside/adjacent to the factory under Rule 2 (l) of the Cenvat Credit Rules, 2004. 2. The brief facts as per show cause notice dated 13/12/2010 for the period December 2009 to August 2010 it appeared by the Revenue that the appellant had taken and utilized Cenvat credit of ₹ 74,170/- of service tax paid on security services used at residential colony (search places far away and other manufacturing area) it appears t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, providing of proper security in the colony area is sine qua non for working of their factory. Reliance was also placed on the ruling of this Tribunal in CCE, Nagpur vs. Ultratech Cements Ltd. 2008 TIOL 1583 CESTAT MUM. (appellant s own case) and also on the GHCL Limited vs. CCE, Bhavnagar 2009 TIOL 1208 CESTAT AHM . and also on ITC Limited vs. CCE, Hyderabad 2009 TIOL 1199 CESTAT BANG. It was also asserted that the transaction is properly recorded in the books of account maintained on order to course of business and as such there is no basis for allegation of Revenue as records concealment, misstatement, suppression of facts etc. 4. The show cause notice was adjudicated with order-in-origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of discharging of excise duty under the Central Excise Act. 6. The learned Counsel for the appellant submits that the residential colony is situated outside the factory area but the colony is located near to the factory. It is further submitted that the factory is located at a remote area and the residential colony constructed and maintained by them is for the use of employees of the appellant for their residential purposes who are engaged and required for manufacture of dutiable final product. It is further avoid that the factory rounds and round the clock and shall be changed odd hours unless the person is available near to the factory the final dutiable goods cannot be manufactured. Accordingly, there is a indirect nexus for manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her reliance is placed on the ruling of Hon ble Bombay Hihg court in the case of CCE, Nagpur Vs. Manikgarh Cement 2010 (20) S.T.R. 456 (Bom.), wherein the assessee is engaged in the manufacture of cement and the credit of services paid on account of repairs, maintenance civil construction etc. used in the residential colony of the assessee was disallowed on the ground that such services is not covered under the definition of input service. The Hon ble High Court observing that residential colony established for the employees and rendering taxable services in that residential colony may be a welfare activity undertaken while carrying on the business and such an expenditure may be allowable under the Income Tax Act. However, to qualify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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