Case Law Details
Mangalam Cement Ltd. Vs Commissioner, Central Excise & CGST (CESTAT Delhi)
Appeal is filed against denial of cenvat credit of service tax taken by the appellant on maintenance and repair work of their residential colony on the ground that the said service has no nexus with the manufacture of final product.
Rule 2(l) of Cenvat Credit Rules specifically provides for allowing Cenvat credit of any service used by manufacturer, whether directly or indirectly in or in relation to the manufacturer of final products, and clearance of the final product up to the place of removal. In this case assessee provides and maintains the facility of residential colony adjacent to the factory. It cannot get the service of competent staff and personnel for running the factory, which is run round the clock, and the employees have to work in shifts. Certain technical and administrative staffs are also required to be available in the vicinity of the factory for any administrative or emergency situation for the smooth running of the business. Further, such residential colony is in the nature of an industrial township and the same has to be maintained by the concerned industry only being situated in the remote place away from the limits of a municipal body.
Appeal is allowed and cenvat credit of service tax taken by the appellant on maintenance and repair work of their residential colony is held to be eligible.
FULL TEXT OF THE CESTAT DELHI ORDER
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