CCE Vs. GRASIM INDUSTRIES

JUDGEMENT

(1.) HEARD both sides.

(2.) In this case, the original authority has denied the credit of service tax paid in respect of repair and maintenance services received for the staff colony, gardening service, security service provided in the wind farms, swimming pool maintenance and civil works undertaken at auditorium, shopping complex etc., on the ground that the same have no nexus with the manufacture of cement by the respondents. On appeal by the respondents, the lower appellate authority has allowed such credit citing inter alia the decision of the Tribunal in the case of CCE, Nagpur v. Manikgarh Cement : 2009 (16) STR 171 (Tri. - Mum.). The department is in appeal against the order of the lower appellate authority on the ground that the services in question have no nexus with the manufacture of finished goods viz., cement.

(3.) SHRI A.H. Niranjan Babu, Ld. SDR appearing for the department states that the services in question are totally unconnected with the manufacturing activity and in any case the decision of the Tribunal in the case of CCE, Nagpur v. Manikgarh Cement (supra), relied upon by the lower appellate authority has been reversed by the Hon'ble Bombay high Court vide CCE, Nagpur v. Manikgarh Cement, 2010 TIOL 720 HC Mum. ST. He prays for setting aside the order passed by the lower appellate authority.