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2023 (7) TMI 1317 - CESTAT AHMEDABADCENVAT Credit - input services - services related to treatment of effluent and waste arising during the manufacture of Agro Chemical Product - denial on the ground that the ETP service do not qualify as input service as the same were not used in or in relation of finished goods whether directly or indirectly - HELD THAT:- The activity of treatment of effluent/ waste arising during the course of manufacture of finished product of the appellant, the said effluent/ waste is required to be mandatorily treated as per the statutory provision of the Pollution Control Board as it is not an option for manufacturer not to treat the effluent/waste accordingly, the expenses incurred on account of effluent treatment is absolutely in the overall expenditure of the appellant’s activity of production. Therefore, the activity of treatment of effluent/ waste is part of the overall manufacturing activity. At the relevant time all the services are included in the inclusion clause of services related to business is also admissible input services. Therefore, the activity of treatment of effluent/ waste is undoubtedly part of overall business activity of the appellant. In absence of this activity the business cannot be run as mandated under Pollution Control Law, therefore, the services of effluent/ waste is indeed an input services and cenvat credit is admissible. As regard the issue that the treatment plant are located outside the appellant’s factory, we find that the location of provision of service is immaterial for allowing the credit on input services, the credit is admissible so long the service activity is in or in relation to the manufacture of finished product and the overall business activity. The appellant is entitled for the cenvat credit on the services of effluent treatment - the impugned order is set aside - Appeal is allowed.
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