2008 (2) TMI 59

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....4(sic)(Rule 14) of Cenvat Credit Rules, 2004. 2. The issue in this appeal is regarding availment of Cenvat credit on the input service (security agency) utilized by the appellants for residential colony which is adjacent to the factory. It is the contention of the Revenue that the security services utilized by the appellant would not fall under the category of input service for residential colony used directly or indirectly in the manufacture of final products. The adjudicating authority upheld the charges alleged in the show cause notice and confirmed the demand. The appellants aggrieved by such order preferred an appeal before the Commissioner (Appeals) who also upheld the Order-in-Original. Hence, this appeal. 2. Heard both sides a....

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....e Commissioner (Appeals) while upholding the Order-in-Original in paras 9.5 and 9.6 holds as under: "9.5. The adjudicating authority in para 14 and 15 in its order while rejecting the contention of the appellant has examined and observed as under: "14. Further, I find that 'Security' is included in the definition of input service referred above. But that does not imply that Security of residential colony is included. The residential colony is outside the purview of the factory premises and hence does not fall within the meaning of this definition, 15. Further, presuming that if we consider the contention of the Noticee, then there would be no end for availment of Cenvat credit on various services provided in the residential....

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....any of the grounds which are raised by the appellant before him. The reliance on the judgment of the Supreme Court in the case of Cyril Lasrado (Dead) by Lrs and Others versus Juliana Maria Lasrado and Another reported in 2004 (7) SCC 431 seems to be correct. The relevant (paras11 and 12) portion of judgment are reproduced: "11. Reasons introduce clarity in an order. On plainest consideration of justice, the High Court ought to have set forth its reasons, howsoever brief, in its order indicative of an application of its mind, all the more when its order is amenable to further avenue of challenge. The absence of reasons has rendered the High Court's judgement not sustainable. 12. Even in respect of administrative orders Lord Dennin....