2010 (3) TMI 402

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....s well as capital goods and input service credit. The respondent availed credit of Service Tax of Rs. 9,78,547/- on the basis of construction of 'compound wall'. It was alleged that construction of compound wall was not falling under the definition of 'input service' as the respondents have not used the service for providing any output service as well as the said service is not used by the respondents directly or indirectly in or in relation to the manufacture of final products and for the clearances of final products. A show-cause notice was issued and demand was confirmed along with interest and penalties. The respondents filed an appeal before the lower appellate authority, who allowed the appeal setting aside the Order-in-Original. Aggr....

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....at the compound wall is necessary if th1ey have to run the factory as any goods lying outside the factory beyond compound wall will be deemed as removed without paying Central Excise duty. He further submitted that the respondents have constructed a new factory and thereafter constructed the compound wall around their factory. The respondents relied on Coca Cola India Pvt. Ltd. v. CCE, Pune-III - 2009 (15) S.T.R. 657 (Bom.) = 2009 (242) E.L.T. 168 (Bom) and M/s. ISMT Ltd. v. CCE, Aurangabad - 2010-TIOL-27-CESTAT-MUM. 5. Heard both sides. 6. I have gone through the records and find that the lower adjudicating authority has denied the input service credit on construction of the compound wall on the ground that this compound wall is not ....