2021 (12) TMI 617

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....ufacturing process or not? b) Whether cenvat credit are eligible on the input services used on the following : i) Electrical Maintenance - lighting of manufacturing Area & internal roads from utility to plant.... Rs. 6,051/- ii) Maintenance of 66 KVA Power line supplying power to plant ....... Rs. 58,607/- iii) Analysis of underground water used in utility and used by workmen. .... Rs. 44.168/- iv) Maintenance of computer hardware on shop- floor, AMC charges for desktops, laptops, scanners, etc, used in the factory- Rs. 1,47,328/- v) AMC charges for datamax (barcode) Printers Rs. 5,932/-   Total Rs. 2,62,088/- Both the lower authorities have denied the Cenvat Credit on the abo....

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....ide of factory premises and laying work of street light in internal roads. The work of laying of underground pipeline network falls under the definition of "works contract" and these services are excluded within the ambit of the definition of input service hence disallowed the credit of the said services. b. The appellant has availed credit of service tax paid on analysis of underground water used in utilities and used by workman. The said services are regarding analysis of bore well water to ascertain its pot-ability, salt and mineral contents of the water; this service is not related to manufacturing activities and has no relation with direct or indirect. Therefore, the service tax credit of the same is not admissible as it has n....

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....d to the manufacturing activity of the appellant, therefore, the credit is admissible. Similarly, the maintenance of 66KV power line supplying power to plant has also direct use in the manufacturing activity of the appellant's factory hence, the credit is admissible. As regard, analysis of underground water used in utility and used by workman. I find that this activity is to make the underground water usable by the human being. It is obligatory on the part of the manufacturer to provide treated water to their employee, therefore, it is in relation to the manufacture of final product hence, the credit is clearly admissible on this service. Regarding the credit of input service in respect of Maintenance of Computer Hardware on shop floor, AMC....