Appellate Tribunal grants CENVAT credit for Service tax on construction of staff quarters

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, allowing the appeal and granting CENVAT credit for Service tax paid on the construction of "Executive Staff Quarters" at Karur. The Tribunal held that staff quarters are considered premises of the bank and qualify as 'input service' under Rule 2(l) of the CENVAT Credit Rules, entitling the assessees to claim the entire Service tax paid as credit.

---

---

The Appellate Tribunal CESTAT, Chennai allowed the appeal regarding disallowance of Cenvat credit for Service tax paid on construction of "Executive Staff Quarters" at Karur. The Tribunal ruled that staff quarters are considered premises of the bank and qualify as 'input service' under Rule 2(l) of the CENVAT Credit Rules. Therefore, the assessees are entitled to take CENVAT credit of the entire Service tax paid.

---