TMI Blog2019 (1) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... taining continuous manufacturing process of the plant. Thus, the said construction is opined to be an activity intended to seek enhancement of the productivity of the plant. Commissioner (Appeals) has failed to appreciate the fact on record creating nexus between the impugned input service and the business activity of the appellant and has wrongly held the same to be a welfare activity - The construction of houses since has been raised with the main objective of enhancement of the business, the same is held as the input service were upon the appellant is entitled to avail the Cenvat Credit. Appeal allowed - decided in favor of appellant. - Excise Appeal No. E/52860/2018-EX [SM] - Final ORDER No. 53377/2018 - Dated:- 16-11-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyees of appellant was made within the factory premises so as to have the ready availability of the staff for their manufacturing process. She has relied upon the following case laws:- 1. Bajaj Hindusthan Ltd. vs. CCE, Meerut-I [ 2014 (33) STR 305 (Tri.-Del.) 2. C.C. C.E., Hyderabad-III vs. ITC Limited 2013 (32) STR 288 (A.P.) 3. Mangalam Cement Ltd. vs. CCE ST, Jaipur-I 2016 (44) STR 422 (Tri. Del.) 4. Shree Cement Ltd. vs. CCE, Jaipur 2013 (32) STR 416 (Tri.-Del.) 5. Bajaj Hindusthan Ltd. vs. CCE, Allahabad 2016 (41) STR 503 (Tri.- Del.) 6. Bajaj Hindusthan Ltd. vs. CCE, Meerut 2016 (43) STR 461 (Tri.- Del.) 7. M/s. Birla Corporation Ltd. vs. CCE, Bhopal Final Order NO. 53289/2017 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. It is very much apparent from the reply of the appellant as was given to the show cause notice that the impugned construction has been made within the factory premises of the assessee/ appellant and the very object of the construction of these buildings for staff and labour in factory compound itself is to ensure the availability of the labour at the spot of manufacture for maintaining continuous manufacturing process of the plant. Thus, the said construction is opined to be an activity intended to seek enhancement of the productivity of the plant. No doubt, the Hon ble Apex Court in Maruti Suzuki Ltd. (Supra) case has held that unless the nexus is established between the services rendered and the business carried on by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent-Company was only an obligatory activity owing to situational exigencies and was not connected either directly or indirectly to the manufacture of its final products This inherent contradiction in the Order-in-Appeal was noted by the CESTAT, which opined that if accommodation was not provided by the respondent-Company to its employees at this remote location, it would not be feasible for it to carry on its manufacturing activity. The finding of the Commissioner that providing a colony to the employees was not directly or indirectly connected with the manufacturing activity of the respondent-Company was therefore not borne out on facts. The staff colony, provided by the respondent-Company, being directly and intrinsically linked to i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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