2023 (8) TMI 1046

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....ices were used outside the factory and having no connectivity with the manufacture of final products, the disputed services cannot be considered as 'input service' for the purpose of availment of the Cenvat benefit. 2. The period of dispute involved in this case is from April, 2009 to March, 2011. The definition of input service under the un-amended provisions of Rule 2(l) of the CENVAT Credit Rules, 2004 (effective up to 31.03.2011) is relevant for consideration of the present dispute. The said rule is extracted herein below: - "2(l) "input service" means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to th....

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....se notice at paragraph 5 has referred to the statement of the Dy. General Manager (Finance) of the appellant company, wherein it has been stated that the expenses incurred on maintenance of their residential colony were in the nature of business expenses and indirectly related to manufacture of the excisable goods. We have also perused the certificate 08.08.2023 issued by M/s Ayush Chitlange & Co., Chartered Accountants, certifying that the cost of services on account of construction, repairs and maintenance received by the appellant in the residential colony of workers formed part of the value of the final products manufactured by the appellant. On perusal of the said document, we find that the appellant had, in fact, incurred the expenses....

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....f services has been taken as expenditure and absorbed in the cost of final product, the credit should be allowed. The finding of the said Tribunal order is reproduced:- "7. The issue involved in this case is regarding availment of Cenvat credit of the service tax paid on various services which were undoubtedly utilized for residential colony/township of the appellant factories. It is the case of the Revenue that such credit is incorrectly availed while the assessee's claim is that having included expenses in the cost of production they are entitled to avail Cenvat credit. Undisputed facts are that appellant has various factories which are situated in remote areas. In order to run the factories smoothly, without any stoppages, they ha....