TaxTMI 
TaxTMI 
2023 (12) TMI 1139
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....t the said services were not 'input services' as defined under Section 2(l) of the Cenvat Credit Rules, 2004. The Notice was adjudicated by the Commissioner vide impugned order, wherein he disallowed the Cenvat credit amounting to Rs.54,79,017/- He also demanded interest and imposed penalty equal to the credit disallowed. Aggrieved against the impugned order, the Appellant has filed the present appeal. 3. The nature of services for which the credit was disallowed and the place where the services are utilized are furnished in a tabular form below: TABLE Sl. No. Nature of Service Plant (Amount involved) Guest House / Employee Township (Amount involved) Total (Amount involved) A Catering services 3,46,523 68,479 4,40,140 B Housekeeping services 5,00,770 4,27,281 9,21,363 C Housekeeping & Catering services 7,41,853 9,77,978 17,19,831 D Interior Decoration services 4,96,946 62,345 5,58,84 E Garden Maintenance services 20,600 - 20,600 F Construction services - 14,12,040 14,12,040 G Consultancy service for construction of Guest House and Townshi....
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.... and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal. 9. We observe that the definition of "input service" read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which are integrally connected with the business of the manufacturer. Thus, the definition of 'input service' has a wide ambit and extends to all services used in relation to the business / activities relating to business. 10. In the instant case, we observe that the housekeeping services, catering services ....
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.... Appellant is in relation to manufacturing activity, since without food it will not be possible for the employees to work in the factory. In this regard, the Appellant placed their reliance on the following judicial pronouncements - (a) Commissioner of C. Ex., Nagpur Versus Ultratech Cement Ltd. [2010 (20) S.T.R. 577 (Bom.)], wherein the Hon'ble High Court held that - "...in the present case, the assessee carrying on the business of manufacturing cement by employing more than 250 workers is mandatorily required under the provisions of the Factories Act, 1948 to provide canteen facilities to the workers. Failure to do so entails penal consequences under the Factories Act, 1948. To comply with the above statutory provision, the assessee had engaged the services of a outdoor caterer. Thus, in the facts of the present case, use of the services of an outdoor caterer has nexus or integral connection with the business of manufacturing the final product" (b) M/s.Tata Steel Ltd. Vs. Commissioner of Central Excise & Service Tax, Jamshedur [ORDER NO.FO/A/75306- 75307/2016-CESTAT-Kol], wherein the Tribunal held that - 3.....It is observed ....
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....arden maintenance service. (v) Manpower services: In the instant case the Appellant had availed services for manpower service which is essential for the cleaning, organizing canteen of workers, work related to dispensary within the factory to provide instant medical treatment to the worker when required etc. Thus, we hold that these activities certainly have nexus with the business of manufacture. In this regard, the Appellant placed their reliance on the following judicial pronouncement: (a) Jaypee Sidhi Cement Plant Versus Commissioner of Central Excise, Bhopal [2014 (310) E.L.T. 808 (Tri. - Del.)], wherein the Tribunal held that - 5. Providing of first-aid facilities to the workers, whether in the factory or in mines is the requirement of the Factories Act, 1948 and also the Mines Act, 1952 and if a manufacturer wants to carry on manufacturing activities, he has to comply with the provisions of the Factories Act and the Mines Act. In view of this, the availment of service for maintenance of the first-aid facilities for the workers has to be treated as the service used in or in relation to the manufacture of final products. I find that the same vi....
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....nufacturing activity. The finding of the Commissioner that providing a colony to the employees was not directly or indirectly connected with the manufacturing activity of the respondent Company was therefore not borne out on facts. The staff colony, provided by the respondent Company, being directly and intrinsically linked to its manufacturing activity could not therefore be excluded from consideration. Consequently, the services which were crucial for maintaining the staff colony, such as lawn mowing, garbage cleaning, maintenance of swimming pool, collection of household garbage, harvest cutting, weeding etc., necessarily had to be considered as input services' falling within the ambit of Rule 2(l) of the CENVAT Rules, 2004......... (ii) M/S Ultratech Cement Ltd Vs Commissioner of Central Excise, Jaipur II [2014-TIOL-656-CESTAT-DEL], wherein the Tribunal held that - "......construction of residential colony near the factory as also of cleaning services obtained for the residential colony and guest house would be cenvatable input services or not. I find that the issue stand covered by the decision of Hon'ble High Court of Andhra Pradesh in the case of CC....