2010 (12) TMI 297

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....espondent runs a Hotel at Shirdi,  (Ahmednagar Dist)  where they availed various input services such as DD Commission, Pest Control, Insurance, Repairs & Maintenance, Telephone, Security, Goods Transport, Travel Agent & Courier  for the purpose of rendering output services namely  Mandap Keeper service, Health & Fitness Services and Business Support Services during the material period. During the said period (November, 2007 to March, 2008), the Hotel was rendering both taxable and exempted output services without maintaining separate accounts for common input services and, therefore, they availed CENVAT credit of the service tax paid on input services and utilized the same only to the extent of 20% of the amount of&....

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....the definition indicates the nexus.  It is further submitted that mere inclusion of the cost of input services in the business expenses of the hotel would not per se entitle them to take CENVAT credit on the input services.  The appellant has also relied upon a plethora of decisions including the apex courts judgment in the case of Maruti Suzuki Ltd. vs. Commissioner of Central Excise, Delhi [2009(240)E.L.T. 641 (S.C.)].   The ld. SDR has reiterated the grounds of appeal.  In the course of his arguments, he has also produced a copy of the High Courts judgment in Commissioner of C. Ex. Nagpurvs. Ultratech Cement Ltd. [2010 (20) S.T.R. 577 (BOM).  3.  The ld. Consultant for the respondent, on th....