2017 (9) TMI 1059

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....ufacturing of sugar and molasses. The appellant was availing facility of Cenvat Credit. The appellant was issued with a show cause notice dated 03 February, 2009 wherein it was alleged that the appellant had availed Cenvat Credit on input services in relation to civil construction of work, construction of office buildings, godowns, draining system, residential complex etc. It was alleged that the services utilized for said purposes had no nexus with the manufacture of final product. Therefore, it appeared to Revenue that Cenvat Credit of Rs. 1,59,05,289/- availed on said input services for the period from January, 2008 to September, 2008 were not admissible to the appellant. Through the said show cause notice there was a proposal to recover....

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....e as input service and therefore he denied Cenvat Credit distributed on account of the same. Aggrieved by the said order appellant is before this Tribunal. 3. Heard the learned counsel for the appellant. The learned counsel has submitted that construction of boundary wall has been considered in the case of Commissioner of Central Excise, Pune-II v/s Raymond Zambaiti Pvt. Ltd. reported at 2010 (18) STR 734 (Tri-Mumbai) wherein it was held that construction of compound wall is necessary to run the factory and therefore, service tax paid on construction of compound wall was eligible for availment of Cenvat Credit. He has further submitted that the issue of Service Tax paid on construction of dormitory has been settled in the case of Bajaj H....

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....er Rule 2(l) of Cenvat Credit Rules, 2004 provided for admissibility of Cenvat Credit of service tax paid on services utilized for sales promotion and activities relating to business and the said activities were relating to business including the renting of immovable property which was for renting of their head office. He has submitted that as per the definition of input service as it stood during the material period said Cenvat Credit distributed by ISD was admissible. 4. Heard, the learned AR who has submitted that the services where Cenvat Credit was denied by Original Authority were not relied to the manufacture of final product and therefore, impugned Order-in-Original is sustainable. 5. Having considered the rival contentions an....