2014 (5) TMI 540

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sible, when such services are not related directly or indirectly to the manufacture of final product, as input service defined under Rule 2(l) of the Cenvat Credit Rules, 2004?" 2. In response to such notice, learned counsel Shri Anand Nainawati appeared for the respondent. We have heard both sides for final disposal of the appeals. 3. Respondent company is a manufacturer of cement. Respondent clears its goods manufactured by it upon payment of excise duty and also availed Cenvat credit in respect of duty paid input and capital goods used in manufacture of such final product. Department, however, was of the opinion that certain services on which the assessee was claiming Cenvat credit was not allowable as per the rules. In t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....R. 610 (Guj.). It was a case wherein the assessee was claiming Cenvat credit on the Service Tax on security services utilized for residential colony of the Company. The Tribunal had accepted the assessee's case. The Department had thereupon approached this Court by filing Tax Appeal. Such Tax Appeal was allowed by the above-mentioned decision dated 11-5-2011. Since the issue dealt with by this Court in the said decision is closely connected with the present controversy, we may record the discussion and finding in such judgment, as under : "7. Learned counsel for the Revenue submitted that Service Tax paid on security service maintained by the assessee in the residential quarters cannot be covered under the definition 'input service'....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....) wherein the Bombay High Court was pleased to allow benefit of Cenvat credit on Service Tax to the manufacturer of concentrate on advertising service used for marketing of soft drink. Counsel also relied on a decision of the Apex Court in the case of Ramala Sahkari Chini Mills Ltd. v. CCE, Meerut-I, 2010 (260) E.L.T. 321 (S.C.) by which, the decision of the Apex Court in the case of Maruti Suzuki Ltd. (supra) has been referred to a Larger Bench. 9. Having thus heard the learned counsel for the parties, short question that confronts us is whether the security service provided by the respondent at the residential quarters maintained for the workers would be included in the term 'input service' as defined in Rule 2(l) of the Cenvat C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts and also for clearance of final products upto the place of removal. This Court in Tax Appeal No. 419 of 2010 and connected matters decided on 6th April, 2011 held that the said definition is exhaustive in nature. 11. Despite such wide connotation of the term 'input service' as defined in Rule 2(l) of the Cenvat Rules, the question is whether the present case would be covered in the said definition. Facts are short and not in dispute. Respondent assessee, manufacturer of soda ash, has provided residential quarters for its workers. In such residential quarters, the assessee also provided security services. Can such security services be stated to be service used by the manufacturer directly or indirectly in or in relation to the man....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s was voluntary. Providing further security service in such residential quarters was also an act voluntary in nature. Independently, we find that such activity cannot be termed within the sweep of expression of 'input service' as provided in rule 2(l) of the Rules. 14. In the result, Revenue's appeal is allowed. The question is answered in favour of the Revenue and against the assessee. The impugned judgment of the Tribunal is set aside. Appeal is disposed of accordingly." 7. To our mind, though there is somewhat difference in the nature of services involved in the present appeals, insofar as all material aspects are concerned, the entire issue has been discussed threadbare and decided in the above-mentioned judgment in the ....