TMI Blog2023 (7) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... per the statutory provision of the Pollution Control Board as it is not an option for manufacturer not to treat the effluent/waste accordingly, the expenses incurred on account of effluent treatment is absolutely in the overall expenditure of the appellant s activity of production. Therefore, the activity of treatment of effluent/ waste is part of the overall manufacturing activity. At the relevant time all the services are included in the inclusion clause of services related to business is also admissible input services. Therefore, the activity of treatment of effluent/ waste is undoubtedly part of overall business activity of the appellant. In absence of this activity the business cannot be run as mandated under Pollution Control Law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il, 2011 to June, 2014 on the ground that the ETP service do not qualify as input service as the same were not used in or in relation of finished goods whether directly or indirectly and thereby do not fall under the definition of input services as defined under Rule 2(l) of Cenvat Credit Rules, 2004. The Adjudicating Authority has confirmed the demand, imposed penalty and ordered to recover interest vide impugned Order-In-Original dated 30.12.2014. Hence, the present appeal is filed by the appellant. 2. Shri Vinay Kansara, Learned Counsel appearing on behalf of the Appellant submits that the effluent arising out of the production of agro chemical product are statutorily required to be treated in terms of directives of Pollution Control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by both sides and perused the records. We find that the activity of treatment of effluent/ waste arising during the course of manufacture of finished product of the appellant, the said effluent/ waste is required to be mandatorily treated as per the statutory provision of the Pollution Control Board as it is not an option for manufacturer not to treat the effluent/waste accordingly, the expenses incurred on account of effluent treatment is absolutely in the overall expenditure of the appellant s activity of production. Therefore, the activity of treatment of effluent/ waste is part of the overall manufacturing activity. At the relevant time all the services are included in the inclusion clause of services related to business is also ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit Rules, 2004. Hence the appellants were issued a show cause notice on 18-1-2013 as to why (i) the input service tax credit of Rs. 4,08,799/-availed and utilised by them should not be recovered. Why interest should not be demanded and why penalty should not be imposed. The adjudicating authority, after due process of law, in the impugned order confirmed the demand of Rs. 4,08,799/-availed by the appellants, demanded appropriate interest and imposed equal penalty of Rs. 4,08,799/-. Aggrieved by the order-in-original, appellants filed appeal before the Commissioner (Appeals) who upheld the order-in-original and hence the present appeal. 3. Heard both the parties and perused the records. Learned counsel for the appellant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endent agency to dispose of the effluents which arise from the manufacturing process and therefore the same is integrally connected with the manufacturing process and therefore fall in the definition of input services. Consequently, I allow the appeal of the appellant with consequential relief if any. COMMR. OF C. EX., JAIPUR Vs. RAJASTHAN SPINNING WEAVING MILLS LTD.-2010 (255) E.L.T. 481 (S.C.) 13. Applying the user test on the facts in hand, we have no hesitation in holding that the steel plates and M.S. channels, used in the fabrication of chimney would fall within the ambit of capital goods as contemplated in Rule 57Q. it is not the case of the Revenue that both these items are not required to be used in the fabrication ..... X X X X Extracts X X X X X X X X Extracts X X X X
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