TaxTMI 
TaxTMI 
2015 (2) TMI 917
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....nd input and capital goods and Service Tax paid on input service used in or in relation to the manufacture of their final products, as per the provisions of Cenvat Credit Rules 2004. The period of dispute in this case is from July 2006 to March 2012. 2. The appellant had entered into a license agreement with M/s Suzuki Motors Corporation, Japan, (hereinafter referred to as M/s. SMC) under which M/s SMC, was to provide the technology for manufacture of motor vehicles against royalty. In terms of clause 6 of the agreement, titled "Welfare", the appellant were to provide each visiting technical personal of M/s SMC with first class furnished western style house ready to use with all necessary furniture, telephone, water supply, cooking facilit....
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.... sides in respect of stay application. 4. Shri K. Anand , Advocate, the Ld Counsel for the appellant, pleaded that the Department has denied Cenvat credit in respect of these services only on the ground that in the clause 6 of the license agreement, these services are mentioned under heading "welfare" and in this regard the Department has relied upon the judgment of Hon'ble Bombay High Court in the case of Manikgarh Cement Reported in 2010 (20) STR 456, Bombay, that the abatement of outdoor catering service and house-keeping service in connection with providing lodging and boarding of the visiting technical personnel of SMC, Japan, in terms of appellant company's agreement with SMC Japan is not a welfare activity but is an obligati....
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....n the impugned order and emphasized that the services of outdoor catering and house-keeping service availed are welfare activities which have no nexus with the manufacture of the final product and hence, in view of the judgment of Hon'ble Bombay High Court in the case of Manikgarh Cement (Supra) , the Cenvat credit demand has been correctly denied. He also emphasized that the appellant license agreement with M/s. SMC, itself categorizes the welfare activities and, therefore, the same cannot be treated as "activities relating to business". 6. We have considered the submissions from both the sides and perused the records. The appellants, in terms of their agreement with M/s SMC, Japan, for manufacture of motor vehicles under license agre....