2014 (5) TMI 948 - AT - Central Excise

CENVAT Credit - Guest house facility - Held that - any service which has nexus with the business activity of the assessee, whether it is manufacturing or rendering service, has to be treated as input service coming within the purview of Rule 2(l) of the CENVAT Credit Rules, 2004. In this case, the respondent being a manufacturer of excisable goods, the Guest House were used and maintained in relation to various business activities. Therefore, I hold that the respondents are entitled for input service credit - Decided against Revenue.

Summary

The appellate tribunal upheld the decision allowing input service credit on a guest house used by the respondent, citing a previous judgment establishing that services related to business activities qualify as "input services." The appeal by the Revenue was dismissed.