2016 (12) TMI 15

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....mmercial construction services used for the construction of annealing sheds, pickling sheds, EB room, wire drawing room, compound wall, rest room, toilet, security room, overhead tank, road laying etc. It was alleged that the assessee had contravened the provisions of Rule 2 (l) and Rule 3 of CCR 2004 by availing credit on ineligible input services as the said services have not been used for providing any output service as well as the said services are not used by the respondents directly or indirectly, in or in relation to the manufacture of final products and for clearances of final products. SCN was issued and demand was confirmed along with interest and penalties. The respondents filed an appeal before the LAA who allowed the appeal by ....

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....;        renovation or repairs of a factory, premises          of provider of output service or an office relating to such factory or premises, are          specifically provided for in the inclusive part          of the definition of input services.     He further submits that the above mentioned constructions are not integral part of the factory and hence it does cover under the definition of "input service" and accordingly respondents are not entitled to take credit of input service on the construction of compound wall, rest room, toilet etc. 4....

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....at credit on the basis of Bombay High Court judgement in the case of CCE Nagpur Vs Ultratech Cement Ltd. - 2010 (20) STR 577 (Bom.). The processing of goods was in relation to manufacture implies not only production but the various stages through which the raw material is subjected to change by different operations. It is the cumulative effect of the various processes through which the raw material is subjected, the manufactured product emerges. Therefore, each step towards such production would be a process in relation to the manufacture. Whether any particular process is so integrally connected with the ultimate production of goods but for that, process, manufacture or processing of goods would be impossible or commercially inexpedient, t....