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2024 (1) TMI 1157 - CESTAT AHMEDABADCENVAT Credit - input services or not - services related to effluent treatment of the waste generated at the appellant’ s factory and such effluent treatment service availed from the third party agency i.e. Bharuch Enviro Infrastructure Ltd., Ankhleshwar (BEIL) - HELD THAT:- As per the pollution control act, it is mandatory for every industrial unit to treat the effluent waste generated during the manufacture of final product, therefore, the industrial unit cannot carry out the production without compliance of pollution control norms which includes effluent treatment of waste generated during the manufacturing activity. Therefore, the effluent treatment of waste is necessary for overall manufacturing activity of the industrial unit. This issue has been considered in the various judgments - reliance can be placed in INDIAN FARMERS FERTILISER COOP. LTD. VERSUS CCE., AHMEDABAD [1996 (7) TMI 141 - SUPREME COURT] where it was held that The apparatus used for such treatment of effluents in a plant manufacturing a particular end-product is part and parcel of the manufacturing process of that end-product. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption. The revenue’s claim that since the service was availed beyond the place of removal, credit is not admissible completely fails and, on that ground, credit cannot be denied. The appellant is legally entitled for availment of Cenvat credit in respect of effluent treatment service - the impugned order is set aside - Appeals are allowed.
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