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TMI Blog2017 (1) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... - reliance placed in the case of DCM Shriram Consolidated Ltd. [2015 (2) TMI 45 - CESTAT NEW DELHI], where the Tribunal has allowed the cenvat credit on Maintenance of Guest House by observing that up-keeping of guest house which is adjacent to the factory premises is necessary business requirement inasmuch as the factory is located outside the said complex and similarly the maintenance of residential premise has also been held to be associated with the business activity. Colony Up-keeping charges - Held that: - reliance placed in the case of COMMISSIONER OF CUS. & C. EX., HYDERABAD-III Versus ITC LIMITED [2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT], where it was held that the staff colony being directly and intrinsically linked to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 25 of Central Excise Tariff Act, 1985 and were availing cenvat credit on duty paid on inputs, capital goods and also input services under Rule 3 of Cenvat Credit Rules, 2004. During the verification of the records of the appellant, the Department observed that certain credit of service tax availed by the appellant were not eligible credit. Accordingly show-cause notices were issued and the adjudicating authority after following the due process disallowed the irregularly availed cenvat credit under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 and demanded interest and also imposed penalty under Rule 15(3) of the Cenvat Credit Rules, 2004. Aggrieved by the said order, the appellant filed the appeals before the Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Del.) c) Oudh Sugar Mills Ltd. V. Commissioner of Central Excise, Lucknow 2014 (34) S.T.R. 309 (Tri.-Del.) 4.1. He further submitted that Guest House are maintained by the appellants for use by their employees traveling from one place to another on business purposes. Further the maintenance of the Guest House is a necessary business requirement as the factory is located outside city boundaries. In support of this submission, he relied upon the following authorities: a) HCL Technologies V. Commissioner of Customs, Central Excise & Service Tax, Noida 2015 (40) S.T.R. 1124 (Tri.-Del.) b) DCM Shriram Consolidated Ltd. V. Commissioner of Central Excise, Jaipur-I 2014 (36) S.T.R. 1120 (Tri.-Del.) c) L' Oreal India Pvt. Ltd. V. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arby township where the employees of the company can get accommodation therefore it becomes necessary for the appellant to provide a Guest House as well as residential colony for its employees and all these things are directly linked to the manufacturing activity. In case of DCM Shriram Consolidated Ltd. cited supra, the Tribunal has allowed the cenvat credit on Maintenance of Guest House by observing that up-keeping of guest house which is adjacent to the factory premises is necessary business requirement inasmuch as the factory is located outside the said complex and similarly the maintenance of residential premise has also been held to be associated with the business activity. Similarly in the case of CCE V. ITC cited supra it has been h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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