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TMI Blog2010 (3) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... th J.H. Motwani, Advocates, for the Respondent. [Order]. - Revenue has filed this appeal against the order of Commissioner (Appeals). 2. The facts of the case are that the respondents are engaged in manufacturing of cotton fabrics and were availing facility of CENVAT credit of duty paid on 'input service' as well as capital goods and input service credit. The respondent availed credit of Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vail input service credit of Service Tax paid on construction of compound wall or not? The learned DR submits that the compound wall is not necessary for the respondents to run their factory and to support his contention, he placed reliance on the following cases :- (i) CCE, Ludhiana v. Vardhman Industries Ltd. - 2007 (219) E.L.T. 65 (P & H). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service on the construction of compound wall. 4. On the other hand, the learned Advocate appearing on behalf of the respondents submitted that the compound wall is necessary if th1ey have to run the factory as any goods lying outside the factory beyond compound wall will be deemed as removed without paying Central Excise duty. He further submitted that the respondents have constructed a new fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ields Ltd. v. CCE, MP - 2006 (200) E.L.T. 357 (S.C.), wherein the Apex Court has held that the "precinct" has to be given broader meaning and not a narrower meaning. The Commissioner (Appeals) also relied on CCE v. Rajasthan State Chemical Works - 1991 (55) E.L.T. 444 (S.C.), wherein the Apex Court has held that "process in manufacture or in relation to manufacture implies not only the production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l around their factory any goods lying within the area of the compound wall would be considered as tying in the factory as per site plan filed with Department for registration. I further find that the construction of compound wall is necessary to run the factory or not depends on the activity taken over by the manufacturer or as per their requirement for manufacturing activity. In this case, from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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