2011 (10) TMI 207

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....ity as well as the first appellate authority being of the view that the services, in question, have no nexus with the manufacture of the final products, have denied the cenvat credit and have confirmed the cenvat credit taken along with interest and also imposition of penalty on them. 2. Heard both the sides. 3. Shri R.Krishnan, Advocate, the learned Counsel  for the appellant, pleaded that the air-conditioning plant in the factory is used for air-conditioning of the office space where the employees of the factory work, that the services of repair and maintenance of such air-conditioning plant have to be treated as 'activities related to manufacturing business' of the appellant, as the employees in the office were working in conn....

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.... in 2009 (235) ELT 661 (Tribunal-Ahmd.),  that in all these judgements, it has been held that a service can be treated as covered by the definition of 'input services' only if such service has nexus with the manufacture of final products and  that in this case, the services of repair and maintenance of the air-conditioning plant for office space of the factory, has no nexus with the manufacture of final products. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have carefully considered the submissions from both the sides and perused the records. 6. There is no dispute that the air-conditioning plant, in respect of which repair and maintenance services had been used, was for air-conditioning of t....

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....siness' and in my view, the repair and maintenance of the air-conditioning plant for the office space has to be treated as activities having nexus with the manufacturing business of the appellant. There is difference between the activities having nexus with the manufacturing business' and the 'activities having nexus with the manufacture of the final product', the former expression is much wider. For determining as to whether a particular service availed by a manufacturer is covered by the definition of 'input service', it has to be examined as to whether that service has  nexus with the manufacturing business of the assessee. On the other hand, for an 'input' to be cenvatable in respect of manufacture of a final product, that input mu....