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TMI Blog2011 (11) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent Company to the input service tax credit availed by it in respect of maintenance of its staff colony and plantation. 2.The respondent Company manufactures paper and paper boards falling under Chapter 46 of the Central Excise Tariff Act, 1985 at its factory at Sarapaka, Khammam District. It availed service tax credit on the input services pertaining to maintenance of its staff colony, plantation and godown for the period October, 2005 to January, 2007. Show Cause Notices dated 18.10.2006 and 11.04.2007 were issued by the excise authorities calling upon the respondent Company to show cause as to why this input service credit should not be recovered along with interest. Levy of penalty under Rule 15 of the CENVAT Credit Rules, 2004 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y averred that it stored materials required for manufacture of its final products in the said godown before transfer to the factory and that the godown fell within the description of 'services used in relation to procurement of inputs'. 5.The Assistant Commissioner of Customs and Central Excise, Hyderabad-III Commissionerate, by Order-in-Original dated 31.12.2007, held in favour of the respondent Company in so far as its claim pertaining to the godown was concerned but negatived its entitlement to claim CENVAT credit in connection with the maintenance of its colony and plantation. She accordingly directed recovery of CENVAT credit to the tune of Rs.40,96,052/- along with interest on these two counts. As the amount had already been paid und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 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 upto the place of removal;" 8.The language of the definition makes it clear that the phrase 'input service' has been given the widest amplitude. The definition by its very nature is an inclusive one and the words used therein leave no roo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 10.As regards the plantation activity, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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