2014 (8) TMI 700

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.... a railway siding constructed at Village Namli on Ratlam - Chittor Section. For construction of the railway siding at Namli, they received Engineering consultancy service from M/s Vogue Construction & Consultancy Services (P) Ltd. and during the period from June 2008 to March 2008 they took Cenvat credit of Rs. 76,695/- of the service tax paid by the service providers on this service. The Department was of the view that this service received by the appellant has no nexus with manufacture of their final product and accordingly the Jurisdictional Assistant Commissioner vide order-in-original dated 19/1/11 confirmed the Cenvat credit demand of the above amount alongwith interest and imposed penalty of equal amount on them under Rule 15 (2) of ....

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....e Apex court's judgment in the case of Maruti Suzuki Ltd. vs. Commissioner reported in 2009 (240) E.L.T. 641 (S.C.), that as held by Hon'ble Bombay High Court in the case of CCE, Nagpur vs. Ultratech Cement Ltd. reported in 2010 (260) E.L.T. 369 (Bom.) (para 31 and 34), the ratio laid down by the Apex Court in the case of Maruti Suzuki Ltd. vs. Commissioner (supra) in context of definition of input in Rule 2(k) of Cenvat Credit Rules, 2004 would equally apply while interpreting expression 'activities to business' in Rule 2 (l) and that in the light of the Apex court's judgment in the case of Maruti Suzuki Ltd. vs. Commissioner (supra), the services having nexus or integral connection with manufacture of final product as well as the business....

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....s of this case and that in view of the above, the impugned order is not correct. 4. Shri Ranjan Khanna, the learned DR, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that the construction of railway siding at railway station Namli far away from the factory has no nexus with the manufacture of final product. He accordingly pleaded that there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. During the period of dispute, that is, during period from June 2008 to March 2010, the definition of 'input service' covered the 'services used in relation to - procurement of inputs' and also the 'activities relating to b....