Tribunal grants Cenvat Credit for security services near factory despite conflicting High Court decisions

The Tribunal allowed the appellant, a cement manufacturer, to claim Cenvat Credit for security services in a residential colony near their factory. Despite conflicting High Court decisions, the Tribunal relied on its own precedent and similarities with a previous Andhra Pradesh High Court case to rule in favor of the appellant. The denial of credit was set aside, and the appellant's appeal was allowed with any consequential relief.

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Issues:
Denial of input services credit on security services availed in a residential colony under Rule 2(l) of Cenvat Credit Rules, 2004.

Analysis:
The appellant, a cement manufacturer, appealed against the denial of Cenvat Credit on security services in a residential colony, contending that the services had a nexus with their manufacturing activity. The appellant cited a decision by the High Court of Andhra Pradesh and previous Tribunal orders in their favor. The respondent argued against the credit, referencing a Bombay High Court decision. The Tribunal noted conflicting decisions by different High Courts but relied on its own previous decision favoring the appellant. The Tribunal found similarities with the Andhra Pradesh High Court case and ruled in favor of the appellant, allowing the Cenvat Credit for security services in the remote residential colony near the factory.

The Tribunal emphasized that since the conflicting High Court decisions were not jurisdictional, it had the liberty to decide independently. Given the precedent set by the Tribunal in the appellant's previous case and the similarity of facts with the Andhra Pradesh High Court case, the Tribunal concluded that the appellant was entitled to claim the Cenvat Credit. Consequently, the impugned order denying the credit was set aside, and the appeal was allowed with any consequential relief.

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