TaxTMI 
TaxTMI 
2016 (9) TMI 942
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.... disallowed and demanded reversal of Cenvat credit to the tune of Rs. 18,15,244/-, availed by them. The disallowance was ordered under Rule 14 of the Cenvat Credit Rules, 2004 readwith proviso to Section 11A of the Central Excise Act, 1944, alongwith payment of interest and levy of penalty of equivalent amount. When the order-in-original was challenged before the First Appellate Authority, he allowed the Cenvat credit of various services total to the extent of Rs. 14,35,168/-. He, however, upheld the order for reversal of Cenvat credit to the extent of Rs. 3,76,076/-. The reversal of Cenvat credit was upheld by the Commissioner (Appeals) on the following services :- Sl. Service Amount (Rs.) Purpose 1. Structural Fabricatio....
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....s been held in the impugned order that structural and construction services are not admissible in view of the exclusion clauses inserted in the definition of input service w.e.f. 01/4/2011. The appellant claim is that these services would be covered under the inclusive clause of the definition of input services under Rule 2 (l) of the Cenvat Credit Rules; these would come under modernization, remuneration or repairs of the factory. The appellants have placed reliance on the following case laws in support of their argument : (a) Cargill India Pvt. Ltd. vs. CCE & ST, Bangalore - I reported in 2015 (38) S.T.R. 587 (Tri. Bang.) ; (b) Triveni Engg. & Industries Ltd. vs. CCE, Meerut I reported in 2016 (42) S.T.R. 186 (Tri. Del.)....
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....) such services have been allowed as input services since the residential colonies near the factories to accommodate employees are required for smooth functioning of the factories in remote areas. Moreover such expenses incurred for construction of township for the employees is in relation to the business activities of manufacturing final products. Similar views have been taken by the Hon'ble High Court of Andhra Pradesh in the case of CCE, Hyderabad III vs. ITC Limited reported in 2013 (32) S.T.R. 288 (A.P.) and also by the Tribunal in the case of Ultratech Cement Ltd. vs. CCE, Jaipur II vide Final order No. A/50344/2015 SM (BR) dated 06/02/2015. Accordingly, I find that the issue is no more res-integra and stands settled in favour of the ....
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....ed that the issue is settled in their favour in their own case vide final order No. 724/2011 SM (BR) dated 10/10/2011. I have gone through the above decision, where the issue stand decided in favour of the appellant. I also find that the credit of service tax on outdoor catering used for canteen meant for the employees, which is a statutory obligation under Factories Act, cannot be denied ; (5) Rain Water Harvesting :- Service tax paid on services used for rain water harvesting stands denied. I find that in the State of Rajasthan, it is a statutory obligation to make arrangements for conservation of rain water make water available within the factory. Accordingly, it will be a service used in relation to manufacture and, hence, allo....