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2015 (7) TMI 970 - AT - Service TaxDenial of CENVAT Credit - Whether certain pollution control services availed by the appellant are eligible to CENVAT Credit under CENVAT Credit Rules 2004 or not - Appellant was required to maintain certain standards of effluent from Appellant's factory as a mandatory and statutory necessity. - Held that:- permissions granted by Gujarat Pollution Control Board under The Water (Prevention And Control of Pollution) Act, 1974, that Appellant was required to maintain certain standards of effluent from Appellant's factory as a mandatory and statutory necessity. When the activity is required to be done mandatorily under a statutory obligation, then it cannot be said that the same is not in relation to the manufacture of finished goods in Appellant's factory. This principle was settled by Hon'ble Supreme Court in the case of Indian Farmers Fertilizer Co-op. Ltd Vs CCE Ahmedabad (1996 (7) TMI 141 - SUPREME COURT OF INDIA), where duty free raw material Naptha used for effluent treatment plant, was held to be eligible for exemption. - treatment of effluent from a factory has to be considered as essential and integral part of the process of manufacture. The ratio of this judgment will be applicable to the services availed by the Appellant - Decided against Revenue.
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