TaxTMI 
TaxTMI 
2014 (1) TMI 822
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....ity services availed by the appellant for guarding the inputs which they had sent to the premises of the job-worker, where the goods were converted into an intermediate product and sent back to the factory of the appellant. The second issue involved in these appeals is whether CENVAT credit can be taken on security services availed at the guest houses maintained by the appellant near their factory for use of their employees during their visit to the factory for doing work relating to manufacture or other business activities. 3. In the matter of security services, the learned consultant for the appellant specifically relies on Rule 3 of the CENVAT Credit Rules, which authorizes a manufacturer to take credit of service tax paid on inp....
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....ices was used in relation to manufacture of intermediate products at job-worker's premises. The adjudicating authority denied credit arguing that the words used in Rule 3 is service "used in the manufacture of intermediate products" and not "used in relation to the manufacture of intermediate products". The Adjudicating authority has argued that since a more stringent expression has been used in Rule 3, the appellant could not take CENVAT credit on security services utilized by them at job-worker's premises. The adjudicating authority relied on the following decisions of the Tribunal in the case of Commissioner of Central Excise, Tricky v. Godrej Sara Lee Ltd. reported in 2011 (266) E.L.T. 85 (Tri.-Chennai). The Commissioner (Appeals), who ....
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....les and notification para 2(a)] : 3.1.1 The primary objection indicated by the field formations is that the language of Notification No. 5/2006-C.E. (N.T.) permits refund only for such services that are used in providing output services. In other words, the view being taken is that to be eligible for refund, input services should be directly used in the output service exported. As regards the extent of nexus between the inputs/input services and the export goods/services, it must be borne in mind that the purpose is to refund the credit that has already been taken. There cannot be different yardsticks for establishing the nexus for taking of credit and for refund of credit. Even if different phrases are used under different rules of....
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....1 (S.C.). 7. In the matter of security service at guest houses, the consultant for the appellant submits that these guest houses are very near the factory and are used only for the stay of the technical or managerial persons or auditors, who visit the factory for doing their work, which are integrally connected with the manufacturing activity and the business of the appellant and, therefore, there is no reason to deny CENVAT credit on such security services either. He relies on the decision of Maharashtra Seamless Ltd. v. Commissioner of Central Excise, Raigad reported in 2012 (276) E.L.T. 209 (Tri.-Mumbai) pointed out that there is no restriction anywhere in the definition of "input services" under Rule 2(1) of the Cenvat Credit Ru....
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....11 (270) E.L.T. 111 (Tri.-Del.), wherein it was held that CENVAT credit cannot be allowed for different services utilized at the Guest Houses. 10. I have considered the arguments from both sides. The definition of "input services", nowhere specifies that the services have to be received and utilized within the factory. This position has been clearly held by the Tribunal in the case of Maharashtra Seamless Ltd. (supra). Rule 3 of the CENVAT Credit Rules specifically provides that credit of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the benefit of exemption specified in Notification No. 214/86-C.E. be allowed. I find that the orders relied upon by the departmental represen....