2017 (7) TMI 58

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.... area, the appellant constructed the residential quarters for the labours/workers working in their factory and availed cenvat credit on construction service as input service. The appellant also availed cenvat credit on insurance charges of car owned by the appellant's company. The Revenue is of the view that the car is being used by the Director of the appellant's company and residential quarters have been constructed for the welfare of the labours/workers, therefore, the same do not qualify as input service as per Rule 2(l) of the Cenvat Credit Rules, 2004. Aggrieved from the said order, the appellant is before me. 3. Heard the parties and considered the submissions. 4. The ld. Counsel for the appellant relied on the decision....

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....urther, I find that in the case of ITC Limited (Supra), wherein the Hon'ble High Court has examined the issue and observed as under: 9. The Commissioner's Order-in-Appeal dated 27-5-2008 reflects that he accepted that the efficiency of the employees of an organization would be dependent on various factors, one such being the provision of a housing colony. He further conceded that these facilities would contribute to the enhancement of the productivity of the organization. Having stated so, the appellate authority surprisingly took the view that maintenance of the residential colony by the respondent-Company was only an obligatory activity owing to situational exigencies and was not connected either directly or indirectly to the....

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....ragraph of the said judgment is extracted herein below. "9. The Commissioner's Order-in-Appeal dated 27-5-2008 reflects that he accepted that the efficiency of the employees of an organization would be dependent on various factors, one such being the provision of a housing colony. He further conceded that these facilities would contribute to the enhancement of the productivity of the organization. Having stated so, the appellate authority surprisingly took the view that maintenance of the residential colony by the respondent-Company was only an obligatory activity owing to situational exigencies and was not connected either directly or indirectly to the manufacture of its final products. This inherent contradiction in the Order....