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2023 (6) TMI 1323 - AT - Central ExciseCENVAT Credit - services received in relation to effluent treatment of the industrial waste - denial of credit on the ground that the effluent treatment activity is post manufacture and the same is not used in or in relation to manufacture of final product accordingly - HELD THAT:- Even though the effluent treatment is not directly connected with the manufacture of final product of the appellant but as per the pollution control act the appellant is bound under the law to carry out the effluent treatment of the Industrial waste generated during the course of manufacture of their final product. As per the provision of Pollution Control Act, if the effluent generated in the manufacture is not treated the appellant shall not be liable to run their factory. In this undisputed position, the effluent treatment activity is necessary to carry out the uninterrupted production of the final product in the appellant’s factory therefore, it can be conveniently draw the conclusion that the effluent treatment activity is a vital part of overall manufacturing of the final product if this be so then the input services used for effluent treatment are admissible input service. This issue is no longer res-integra as in the various judgments the services related to effluent treatment has been held as admissible input service and cenvat credit was allowed - In case of COMMISSIONER, CENTRAL EXCISE & SERVICE TAX, SURAT-II VERSUS MI/S KANORIA CHEMICALS & INDUSTRES LTD. [2015 (7) TMI 970 - CESTAT AHMEDABAD] this tribunal dealt with the similar fact held that treatment of effluent from a factory has to be considered as essential and integral part of the process of manufacture. In case of M/S. WIPRO ENTERPRISES (P) LTD., (FORMERLY ‘M/S. WIPRO LTD. ’) VERSUS THE COMMISSIONER OF G.S.T. & CENTRAL EXCISE, [2018 (12) TMI 1167 - CESTAT CHENNAI] this tribunal’s Chennai Bench on the issue of credit on water treatment held that demand raised on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015 is set aside Thus, it can be seen that the issue is no longer res-integra as the services availed in respect of effluent treatment plant for treatment of industrial waste is in relation to the overall manufacturing activity of the appellant’s final product in the appellant’s factory therefore, the said services are input service hence, the credit is admissible. Appeal allowed.
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