TMI Blog2015 (9) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... or catering nor there is any element of recovery of Service Tax from the employees - As regards the ‘gardening expenses', the credit on the same is fully allowable as the same is required for maintaining the goods atmosphere in the manufacturing area and also a condition precedent laid down by the State Pollution Control Board, without which the appellant cannot resort to manufacturing activity. As regards the ‘cleaning expenses', the same have been incurred in the maintenance of residential colony, which forms part of the factory premises, I take notice of the fact that the colony is part of the factory premises as per the approved map by the Central Excise authorities. Further, there is no Municipality in the area where the factory and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Repair/maintenance service of Guest House, Gymnasium and sports club/sports ground etc. The assessee was further required to show cause as to why the proposed CENVAT Credit not be disallowed and recovered from it, and further as to why not interest be recovered and further why not penalty be imposed under Section 11AC(1)(a) of the Central Excise Act read with Rule 15(2) of the Cenvat Credit Rules, The appellant contested the show-cause notice by filing written submissions. Vide Order-in-Original dated 16.7.2013, the Commissioner adjudicated the show-cause notice and disallowed part of the proposed disallowance of CENVAT Credit for an amount of ₹ 23,03,110/- along with interest and also imposed equal amount of penalty under Rule 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the extended period demand is fit to be set aside. 2.1 As regards canteen expenses', the appellant states that they did not avail any outdoor catering services and they have not taken credit of any Service Tax paid on the same. Within the factory premises, they are maintaining their canteen, which is also a statutory requirement under Section 46 of the Factories Act. The appellant has about 1000 employees working in their factory. Appellant is availing the service of an agency to supply them the required manpower/labour to enable them to run the canteen. They have taken credit of the Service tax paid on the services utilized by them for deployment of manpower to run their canteen. Thus, the input service is not in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees. As such, the same is beyond the scope of show-cause notice and accordingly, fit to be set aside. 2.4 As regards gardening expenses, it is pointed out that the same are essential for running the factory in support of which the appellant have produced the Consent to operate letter issued by the Maharashtra Pollution Control Board' dated 26.3.2007, wherein the Pollution control Board considering the parameters that the Trade Effluent and discharge sewage etc., have given the consent subject to the condition that green belt afforestation is to be done up to 33% on available open space land as per the said consent letter. Thus, maintenance/afforestation and green belt in and around factory premises is an essential part, is the Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant cannot resort to manufacturing activity. 4.2 As regards the cleaning expenses', the same have been incurred in the maintenance of residential colony, which forms part of the factory premises, I take notice of the fact that the colony is part of the factory premises as per the approved map by the Central Excise authorities. Further, there is no Municipality in the area where the factory and colony is located for providing the services of township maintenance. The colony is a small industrial township, created by the appellant for running its factory and as an industrial township; the same is required to be maintained by the Industry itself (Article 243 of the Constitution of India). As such the disallowance of cleaning exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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