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2015 (10) TMI 113 - AT - Service TaxDenial of CENVAT Credit - Whether Cenvat credit is available on house-keeping service and business auxiliary service - Held that:- Cleanliness has to be maintained by all factories/manufacturing units as also provided under the ‘Prevention and Control of Pollution Act’ for industries. Cleaning services are taken by the noticee as a pollution control measure and to ensure a healthy surrounding to all its employees. Further in the case of M/s. Ultra Tech Cement, in [2009 (4) TMI 785 - COMMISSIONER OF CENTRAL EXCISE (APPEALS), PUNE-II], decision of the Apex Court in the case of Indian Farmers Fertilizer Co-operative Ltd. v. CCE [1996 (7) TMI 141 - SUPREME COURT OF INDIA] has been referred. - in the place of equipment/devices, in the instant case, services such as cleaning/maintenance of garden/trees, plantation, etc. are used to control the pollution created by the industry and the same could be considered as input services used in relation to manufacture of final product. In view of above, there is no force in the contention of the Revenue that Cenvat credit should be disallowed. In view of Supreme Court’s judgment and other several judgments relating to law at relevant time i.e. before amendment in 2011, Cenvat credit was allowable. Revenue’s contention that Network cable laying/dismantling, installation of network cable, network laying fall in the Business Auxiliary Service was not correct. It was further pleaded that provision of these services has no nexus with the manufacturing/clearance process of final products. Rule 9(5) of the Cenvat Credit Rules, 2004 places the burden of proof regarding admissibility of Cenvat credit on the manufacturer taking such credit. In the present case, the assessee has failed to show how the provision of these services has any nexus with the manufacturing/clearance process of their final products. I find force in Revenue’s contention. It is rightly pointed out that laying of cables or network cables were not in the nature of Business Auxiliary Service. Cenvat credit on these cables could be allowed only if these are covered under eligible inputs or capitals as provided under the rules. - Decided partly in favour of Revenue.
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