2022 (3) TMI 912

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....esidential colony has been denied on the ground that the said service has no nexus with the manufacture of final product. 2. Ms. Sukriti Das, the Ld. Advocate appearing for the appellant submits that the residential facilities have been developed near by the factory which is situated in a remote area approximately 60KM away from the district headquarter, Kota. She further submits that if such facilities are not developed and not properly maintained, there would be no availability of proper staff and labour required for continuous manufacturing activities. Thus, submits that residential colony constructed adjacent to the factory is in relation to the manufacture of the final product, and as such, the cenvat credit taken on the disputed se....

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....envat credit of service tax paid on the taxable services used in the residential complex shall be available to the manufacturer. The relevant paragraph 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 exigen....

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.... factory has the nexus with the ultimate manufacture of the goods, the judgment cited by the Ld. AR is not applicable to the facts of this case. 8. In view of above, I do not find any merits in the impugned order passed by the Ld. Commissioner (Appeals) and thus, the same is set aside and the appeal is allowed in favour of the appellant. 9. In the Ruling in the case of Manikgarh Cement of Hon'ble Bombay High Court have considered the eligibility of Cenvat credit of Service Tax on account of repairs, maintenance, civil construction etc. used in the residential colony, was disallowed on the ground that such service is not covered under the definition of input service. The Hon'ble High Court also observed that the extension of residentia....