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TMI Blog2011 (5) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... the security service provided by the manufacturer in the residential quarters maintained for the workers as having any direct or indirect relation in the activity of manufacture of the final product. This is also the view of the Bombay High Court in the case of Manikgarh Cement (2010 -TMI - 78189 - BOMBAY HIGH COURT). - the act of providing residential quarters by the manufacturer to its employees was voluntary. Providing further security service in such residential quarters was also an act voluntary in nature. – Benefit of cenvat credit denied. - TAX APPEAL No. 328 of 2010 - - - Dated:- 11-5-2011 - Akil Kureshi and Sonia Gokani, JJ Appellants Represented by: Shri Y N Ravani Respondents Represented by: Mr B L Narasimhan and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (214) ELT 481 (S.C.) . a nd in the case of Maruti Suzuki Ltd. Vs. Commissioner of Central Excise, Delhi, 2009 (240) E.L.T. 641 (S.C.) . 3. In the light of the aforesaid, notice for final disposal returnable on 24 th February, 2011. 3. In response to the notice issued by this Court, learned advocate Shri Jigar Shah appeared for the respondent assessee and raised the preliminary objection with respect to maintainability of appeal on the ground of smallness of the claim. Learned counsel for the Revenue, however, drew our attention to Circular of CBEC dated 10 th November 2008 wherein in following cases despite smallness of claim, appeal could be filed: 5. It is further added that adverse orders/judgments relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The Assessee carried the issue further in appeal before the CESTAT. The Tribunal by the impugned judgment dated 15.7.2009 allowed the appeal making following observations : 3. Learned DR has drawn my attention to the Hon'ble Supreme Court's judgment in the cases of Collector of Central Excise vs. Solaris Chemtech Limited reported in 2007 (214) ELT 481 (SC). However, I find that the said judgment was in the context of Central Excise Law and as such is not applicable to the definition of input services as defined in Rule 2(1) of the Cenvat Credit Rules. On the other hand, I find that the Tribunal in the case of Manikgarh Cement v. Commissioner of C.Ex. Customs, Nagpur reported in 2008 (9) STR 554 (Tri. Mumbai) after consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quarters or factory was available as revenue expenditure for the reason that repair and reconstruction enable the assessee company to carry on its business, while the Bombay High Court held that expenditure incurred on maintenance of transit quarters used for accommodating employees visiting Bombay from outstation for business purpose was to be allowed in computing the income chargeable under the head profit and gain of business or profession under the provisions of Section 37(1). In view of the above, I hold that the appellants are entitled to avail the credit of duty paid on the security services utilized for residential purposes and allow the appeal with consequential relief to the appellant. 7. Learned counsel for the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Cenvat Credit Rules. Counsel further relied on the decision of the Bombay High Court in the case of Coca Cola India Pvt. Ltd v. CCE Pune, III, 2009 (15) STR 657 (Bom.) wherein the Bombay High Court was pleased to allow benefit of Cenvat Credit on service tax to the manufacturer of concentrate on advertising service used for marketing of soft drink. Counsel also relied on a decision of the Apex court in the case of Ramala Sahkari Chini Mills Ltd. v. CCE, Meerut -I, 2010 (260) ELT 321 (SC) by which, the decision of the Apex Court in the case of Maruti Suzuki Ltd (supra) has been referred to a Larger Bench. 9. Having thus heard the learned counsel for the parties, short question that confronts us is whether the security servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place of removal. This definition, of course, is worded to include variety of services used not only for, but in relation to manufacture of final products and also for clearance of final products upto the place of removal. This Court in Tax Appeal No.419 of 2010 and connected matters decided on 6 th April 2011 held that the said definition is exhaustive in nature. 11. Despite such wide connotation of the term 'input service' as defined in rule 2(l) of the Cenvat Rules, the question is whether the present case would be covered in the said definition. Facts are short and not in dispute. Respondent assessee, manufacturer of soda ash, has provided residential quarters for its workers. In such residential quarters, the assessee also p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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