The honourable Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad , in the case of C.C.E. & S.T.-Rajkot Vs. Sanghi Industries Ltd. has held that the cenvat credit is to be allowed on the furniture used in the guest house of the factory building . The tribunal observed that

“As regard the availment of Credit of Rs. 11,39,646/- availed on furnitures, we find that there is no dispute that the said furnitures are used in guest house and the guest house is part of factory. In Board‟s Circular No. 943/4/2011-CX, dated 29-4-2011, it is mentioned that “goods such as furniture and stationery used in an office within the factory are goods used in the factory and are used in relation to the manufacturing, business and hence, the credit on the same is to be allowed.

Undisputedly, the guesthouse is used for operations of the factory. Nothing is available on record to show that guest house is used for any other purpose. In view of this fact, since guest house used for operations of factory which has direct nexus with factory which produces excisable goods therefore Cenvat credit is admissible to the appellant on the furnitures used in Guest House of the factory.”

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