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TMI Blog2018 (8) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... y are welfare measures meant for the general well being of the workers who manufacture the goods - thus, the assessee is not entitled to the credit of service tax paid on the buses hired to bring workers to their factory. Credit not allowed - appeal dismissed - decided against appellant. - Appeal No. E/30445-30446/2018 - Final Order No. A/30750-30751/2018 - Dated:- 24-7-2018 - Mr. P. V. Subba Rao, Member ( Technical ) Shri M. Rajendran, Advocate for the Appellant Shri Dass Thavanam, Superintendent/DR for the Respondent ORDER [ Order Per : P. Venkata Subba Rao ] 1. These appeals are filed against Orders-in-Appeal Nos.VIZ-EXCUS-001- APP-242 to 245-17-18 dated 26.02.2018. Heard both sides and perused the records. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period Feb, 2015 to December, 2015 on the same grounds. All these, 4 show cause notices were adjudicated by the Superintendent, Srikakulam range in view of the revised monetary limits for adjudication. He confirmed the demands in these notices and imposed penalty of 10%. 2. Aggrieved, the appellant filed an appeal before the first appellate authority who, vide Order-in-Appeal Nos.VIZ-EXCUS-001-APP-242 to 245- 17-18 dated 26.02.2018 upheld all the 4 Orders-in-Original and rejected the appeals. The present appeal is against this Order-in-Appeal. 3. The appellant challenged the Order-in-Appeal on the following grounds. (a) Since for an earlier period the Commissioner (Appeals) had held in their favour and the department did not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf. He relied on the following judgments. (1) Maruti Suzuki Ltd [2009 (240) ELT 641 (SC) in which it was held that input used in generation of electricity wheeled out to vendors by the assessee would not constitute an input used in or in relation to manufacture of the final product. (2) CCE, Nagpur Vs Manikgarh Cement [2010 (20) STR 456 (Bom.)] in which it was held that services of repair and maintenance and civil construction used in residential colony of the assessee is a welfare measure and it cannot be said to be integrally connected with the business of the assessee. Although the expenditure may be allowable under Income Tax Act, no CENVAT credit is admissible. (3) Applied Micro Circuits India Pvt Ltd [2016 (42)STR 441 (Tri.- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts. Every activity undertaken by a business can have some remote relation to their business. The question is where you draw the line to decide whether it is used in or in relation to the manufacture. In my opinion, the line can be drawn at the factory. Once the workers come into the factory their services are used in relation to the manufacture of final products. But bringing workers to the factory or providing accommodation to them outside the factory or providing any other welfare measures for the workers or their families have no nexus with the manufacture of the final products, although they are welfare measures meant for the general well being of the workers who manufacture the goods. Thus in this case, I find that the assessee is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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