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2016 (9) TMI 363 - AT - Central ExciseCenvat credit - Man Power Services - service used for the purpose of cleaning of appellant's canteen during the period from October 2008 to March 2013 - service provider collected a consolidated amount towards housekeeping which also included the amount paid to the services used for cleaning of canteen - nexus to the manufacturing activity - Held that:- canteen is an integral part of the factory and clean maintenance of the factory including its precincts are a statutory requirement under Section 11 of the Factories Act, 1948. Therefore, this service has to be treated as a service used by the manufacturer in or in relation to the manufacture of final product as without complying with the said provisions of the Factories Act, 1948, manufacturing operations are not possible. Without the factory including the canteen, being clean and tidy, the efficiency would get drastically reduced. Further, it should be borne in mind that housekeeping is crucial for safe workplaces. It can also help an employer avoid potential fines for non-compliance due to bad housekeeping, which would in turn affect productivity. In view of this the appellants are eligible for credit. Invokation of extended period of limitation - Held that:- authorities have failed to appreciate that the appellants are regularly filing their ER-1 returns and in the return filed for the relevant period in terms of Rule 7 of Cenvat Credit Rules, 2004 they have shown the credit availed in respect of Service Tax paid for services rendered by M/s. Servocraft HR Solutions Pvt. Ltd; that having knowledge about the availment of credit from the return, which is acknowledged by the authority, extended period of limitation, cannot be invoked on the ground of suppression. Also penalty imposed are set aside. - Decided in favour of appellant
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