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2014 (7) TMI 185 - AT - Central ExciseCENVAT Credit - Nexus with manufacturing activity - whether during the period from March 2007 to March 2010, they were eligible for Cenvat credit of service tax paid in respect of outdoor catering service for providing canteen facility to the workers in the factory, manpower supply service for maintenance of lawns and green belt around the factory and for maintaining cycle stand for the workers - Held that:- Number of workers in the appellant s factory is more than 250 and the charges for providing canteen facility are not recovered from the workers. The appellant in terms of the provisions of Section 46 of the Factories Act are required to provide canteen facility to the workers for which they have availed the outdoor catering service and hence this service has to be treated as service availed in or in relation to manufacture of final product. As regards, the service of manpower supply for maintaining green belt and lawn, the same has been availed to comply with the directions of Rajasthan State Pollution Control Board under their letter dated 8th January 2008 under which while permitting the discharge of Industrial/Domestic effluents from the factory, the Pollution Control Board has put a condition that 33% of the total area of the factory premises shall be covered by the tree plantation. Since, without maintaining the green belt around the factory, the manufacturing operations would not be allowed, I am of the view the services for maintenance of lawn and green belt have to be treated as services used in or in relation to manufacture of final product or in other words this service has nexus with the manufacture of final product and, hence, would be eligible for Cenvat credit. I find that same view has been taken by the Tribunal in the case of CCE, Bhavnagar vs. Nirma Ltd. reported in [2010 (6) TMI 315 - CESTAT, AHMEDABAD] and in the case of JBM Auto System Pvt. Ltd. vs. CCE, Chennai reported in [2011 (7) TMI 412 - CESTAT, CHENNAI]. In view of this, denial of Cenvat credit in respect of the service availed for maintenance of lawn and green belt also not sustainable - Decided in favour of assessee.
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