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TMI Blog2017 (9) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 1-9-2017 - Shri Ramesh Nair, Judicial Member Shri J.C. Patel, Advocate for appellant Shri S.V. Nair, Asst. Commr. (AR) for respondent ORDER Per : Ramesh Nair The issue involved is that whether various services like repair, maintenance services and construction services used in the residential colony of the employees is eligible for CENVAT credit. 2. Shri J.C. Patel, learned Advocate appearing on behalf of the appellant submits that though in the appellant's own case as reported at 2010 20 STR 456 the Hon'ble High Court of Bombay denied CENVAT credit, however, the fact is that the expenses incurred in respect of such service was included in the value of the final product which was cleared on pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rates the finding of the impugned order. He submits that for allowing CENVAT credit, there is no criteria that if the cost of the expenses of the services taken as expenditure in the value of finished goods CENVAT credit should be allowed. As per Cenvat Credit Rules, 2004, cenvat can only be allowed when the services received and utilized in respect of manufacture of final product. In the case of Manikgarh Cement, the Hon'ble High Court of Bombay has taken a view that the services utilized in the residential colony are not related to the manufacturing activity hence it was denied. He places reliance on the decision of Indo Rama Synthetics (India) Ltd. - 2007 (219) ELT 122 (Bom.) and the CCE vs Gujarat Heavy Chemicals Ltd. - 2011 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reas. In order to run the factories smoothly, without any stoppages, they had constructed township/residential colonies near factory premises and accommodated the employees working in such factories. It is a fact, that appellant had produced Cost Accountant's certificate indicating that the expenses incurred for setting up of the township/colony and various expenses incurred for maintenance and upkeep of such factory was charged to balance sheet/profit and loss account as expenses and the said expenses were considered as cost of production was produced before the adjudicating authority, as well as the first appellate authority and both the lower authorities did not controvert the said certificate in any way nor both the lower authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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