TaxTMI 
TaxTMI 
2010 (8) TMI 517
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.... other Financial Services' and they are availing Cenvat credit on capital goods and input services under Cenvat Credit Rules, 2004 and utilised the credit so taken for payment of service tax on the services provided by them. A show-cause notice dated 14-11-2007 was issued proposing disallowance of credit of service tax paid on services utilized in connection with construction of staff quarters on the ground that such services cannot be considered as input services in relation to the services provided by the appellants. Original authority disallowed the credit and ordered recovery of Rs. 2,02,876/- along with interest. He also imposed a penalty of Rs. 1,000/- under Section 77 of the Finance Act, 1994 and Rs. 10,000/- under Rule 15 of the Cen....
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....nnection to the activities of providing services. He relies on the decision of the Tribunal in Appeal No. E/516/2008 vide Final Order No. A/632/2009/SMB/C-IV, dated 3-11-2009 in the case of Commissioner of Central Excise, Nagpur v. Manikgarh Cement Works reported in 2009 (11) LCX0136 = 2010 (18) S.T.R. 275 (T), wherein it has been held that credit of service tax paid on services rendered in residential colony of the factory cannot be allowed. 6. Learned DR relies on the decision of the Hon'ble Supreme Court in the case of Collector v. Solaris Chemtech Ltd. reported in 2007 (214) E.L.T. 481 (S.C.) wherein it has been held that the credit on inputs used for generation of electricity which was consumed in the residential colony of the ....
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....etermined based on nexus to the services provided by the party. The services utilized should be in or in relation to the providing of output services. The ownership of the premises per se is not relevant for making credit eligible. If the appellant is rendering the services from a rented premise, still if the services utilized are input sendees, the credit shall be available. Merely because the service provider owns several premises some of which were not connected to the providing of services, the services utilized in the premises, in my considered view, cannot be treated as 'input services' and made eligible for Cenvat credit. The appellants are not eligible for the credit claimed by them. 9. Thus, I am in agreement with the decis....
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....directly. 6. In the earlier cases of the same assessee, Coordinate Benches held in their favour. According to the ld. Counsel, the Hon'ble High Court's decision in Coca Cola case should be followed as binding precedent in this case. I find that the Hon'ble Supreme Court's ruling in Maruti Suzuki case is to the contra and the same is constitutionally binding on this Tribunal." 10. However, I find that the Tribunal in appellant's own case vide order dated 9-4-2010 in Appeal No. ST/81/2009 [2010 (19) S.T.R. 40 (T)] has allowed Cenvat credit of service tax paid on services utilised for construction of executive staff quarters. The said order reads as under :- "Cenvat credit of service tax paid for construction of "Executive S....