TMI Blog2023 (8) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... nclusive part of the definition, the phrase activities relating to business is specifically finding place for the purpose of consideration of the services as input service for grant of the benefit of CENVAT Credit to the manufacturer/service provider - It is found that the cost of the disputed services together with the service tax paid thereon towards maintenance and repair of the residential colony situated adjacent to the factory premises had been considered by the appellant for calculation of the cost of production of manufacture of final products and on clearance of the same, they had discharged appropriate duty liability, which has also not been disputed by the Department. The appellant had, in fact, incurred the expenses towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit. 2. The period of dispute involved in this case is from April, 2009 to March, 2011. The definition of input service under the un-amended provisions of Rule 2(l) of the CENVAT Credit Rules, 2004 (effective up to 31.03.2011) is relevant for consideration of the present dispute. The said rule is extracted herein below: - 2(l) input service means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... residential colony were in the nature of business expenses and indirectly related to manufacture of the excisable goods. We have also perused the certificate 08.08.2023 issued by M/s Ayush Chitlange Co., Chartered Accountants, certifying that the cost of services on account of construction, repairs and maintenance received by the appellant in the residential colony of workers formed part of the value of the final products manufactured by the appellant. On perusal of the said document, we find that the appellant had, in fact, incurred the expenses towards maintenance of the residential colony situated adjacent to factory and such cost has also formed an element of the cost, while preparing the periodic statement of the cost of production, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in this case is regarding availment of Cenvat credit of the service tax paid on various services which were undoubtedly utilized for residential colony/township of the appellant factories. It is the case of the Revenue that such credit is incorrectly availed while the assessee's claim is that having included expenses in the cost of production they are entitled to avail Cenvat credit. Undisputed facts are that appellant has various factories which are situated in remote areas. In order to run the factories smoothly, without any stoppages, they had constructed township/residential colonies near factory premises and accommodated the employees working in such factories. It is a fact, that appellant had produced Cost Accountant's cer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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