security at the guest house has no nexus or relation with the business of manufacture of assessees

The provision of security at the Calcutta guest house has no nexus or relation with the business of manufacture of the assessees, who are manufacturers of ‘Titanium-di-oxide’, ‘Ferrous Sulphate’ etc., in Tuticorin. Therefore, the security service for the guest house cannot be considered as an input service so as to make credit of tax paid on such services admissible to the assesses. I, therefore, uphold the impugned order and reject the appeal.

CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI

Appeal No. E/512/2010

Arising out of Order-in-Appeal No.16-169/2010 Dated: 3.6.2010
Passed by the Commissioner of Central Excise (Appeals), Madurai

Date of Decision: 21.3.2011

M/s KILBURN CHEMICALS LTD

Vs

COMMISSIONER OF CENTRAL EXCISE, TIRUNELVELI

FINAL ORDER NO. 485/2011

Per: Jyoti Balasundaram:

The issue for determination in this appeal is whether the assessees herein are entitled to avail credit of service tax paid for providing security to their guest house situated at Calcutta – manufacturing activities carried on in Tuticorin.

2. We have heard both sides. The provision of security at the Calcutta guest house has no nexus or relation with the business of manufacture of the assessees, who are manufacturers of ‘Titanium-di-oxide’, ‘Ferrous Sulphate’ etc., in Tuticorin. Therefore, the security service for the guest house cannot be considered as an input service so as to make credit of tax paid on such services admissible to the assesses. I, therefore, uphold the impugned order and reject the appeal.

(Dictated and pronounced in open court)

NF