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TMI Blog2016 (8) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... e observations Cenvat Credit of services used in maintenance, repair and civil construction used in the residential colony of the appellant is not admissible. Cenvat credit - utilization of items in making of support structures of the machinery - Held that:- in view of the decision of Hon’ble Allahabad High Court in the case of Bajaj Hindusthan Ltd. v. UOI [2013 (9) TMI 24 - ALLAHABAD HIGH COURT], the Appellant is not eligible to credit on the items used in making of the support structures for the machines. It has also been admitted by the Appellant before the first appellate authority that Appellant does not have any evidence to the effect that items are used in the maintenance and repairs of capital goods. Imposition of penalty - He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pair of the workers quarters. It is the case of the appellant that maintenance of staff quarters at a remote place is essential for undertaking taxable activity, therefore, Cenvat Credit of services availed for construction/maintenance of such quarters is admissible under Cenvat Credit Rules, 2004 (CCR, 2004). 3. That remaining Cenvat Credit denied by the lower authorities is with respect to HR coils, plates, GP sheet, plain plates, steel flats etc.. That such inputs have been held to be eligible for Cenvat Credit as per order dated 03.11.2015 passed by Allahabad CESTAT in the case of The Oudh Sugar Mills Ltd. vs. CCE, Lucknow (Final Order No.A/70221/2016-SM (BR). 4. Shri S.Mukhopadhyay, Supdt.(AR) appearing on behalf of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to items used in making support structures of the machinery will be admissible to the Appellant. 6. On the issue of eligibility of maintenance, repairs and construction services used for the staff quarters of a manufacturer, Hon ble Bombay High Court in the case of Commissioner of Central Excise, Nagpur vs. Manikgarh Cement (supra) has held in para 9 as follows:- 9. Applying the ratio laid down by the Hon ble Apex Court in the case of Maruti Suzuki Limited v. Commissioner of Central Excise, Delhi (supra), we hold that unless the nexus is established between the services rendered and the business carried on by the assessee, the benefit of CENVAT credit is not allowable. In the present case, in our opinion, rendering taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of which it could be ascertained as to how much quantity of structural steel material was used for various items of capital goods claimed to have been fabricated. The store ledgers and the store issue slips did not establish the use of structural steel items issued. The CESTAT had found that the appellant had neither intimated the department regarding use of structural steel material for fabrication of various items of capital goods, nor the details of the capital goods fabricated could be found in the ER-1 return. The jurisdictional Central Excise Officers thus did not have material before them to verify the claims. 11. The amendment of Explanation-2 of Rule 2(k) by Notification dated 7-7-2009 is clarificatory in nature as the item ..... X X X X Extracts X X X X X X X X Extracts X X X X
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