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2018 (7) TMI 682 - AT - Central ExciseCENVAT Credit - input services - services received by them for raising the height of tailing Dam for disposal of Industrial Waste - Rule 2(1) and 3 of CCR 2004 - Whether the services received for raising of height of tailing dam can be treated as input service in terms of Rule 2(l) of the CCR? Held that:- It is an admitted fact that the services in question availed by the respondent in relation to the raising height of tailing dam are used essentially for the purposes of disposal of hazardous waste, in compliance with the Environmental laws. Without complying with the said environmental laws, the respondent couldn’t carry out the manufacturing process and cannot run the factory. Therefore the services received for raising the height of tailing dam for disposal of industrial waste are integrally connected with the manufacturing of finished products by the respondent. There is no allegation that the services received for raising the height of tailing dam were being used for other purpose than collecting the waste generated during the manufacturing process. The tailing dam is used for collecting residue of plant generated during the beneficiation process and the same is an integral part of process of manufacture. Therefore the service received for rising of height of tailing dam falls under the scope of ‘input service’ as defined under Rule 2(l) of the Cenvat Credit Rules, 2004 and as per Rule 3 of the Cenvat Credit Rules, 2004, a manufacturer or producer of final product is allowed to take credit of service tax paid on any ‘input service’ received by them. On an identical issue in respondent‘s own case, M/S HINDUSTAN ZINC LIMITED VERSUS CCE, JAIPUR-II [2017 (7) TMI 387 - CESTAT NEW DELHI], this Tribunal has held that the cenvat credit received on the services for raising the height of tailing dam and maintenance service for pipeline work of tailing dam, used for disposal of industrial waste and polluted water in compliance with Environmental laws is an input service within the meaning of Rule 2(1) of Cenvat Credit Rules, 2004 used by the manufacturer indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. Credit allowed - appeal dismissed - decided against Revenue.
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