TMI Blog2023 (12) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... eeping services, catering services and interior decoration services are availed at the plant/factory and hence denial of the credit in respect of the said services is not justified. Housekeeping services - HELD THAT:- These services are very necessary and vital for keeping the factory in good condition. Hence the expenses incurred towards housekeeping services qualify as input service under CENVAT credit Rules, 2004 - reliance can be placed in the case of COMMISSIONER OF CENTRAL EXCISE, DELHI-III VERSUS M/S PRICOL LTD. [ 2015 (12) TMI 1486 - CESTAT NEW DELHI] and BALKRISHNA INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., AURANGABAD [ 2010 (3) TMI 375 - CESTAT, MUMBAI] . Catering services - HELD THAT:- The factory of the Appellant is in the remote area and thus the Appellant had to supply food to the workers. Therefore, the service of catering as availed by Appellant is in relation to manufacturing activity, since without food it will not be possible for the employees to work in the factory - reliance can be placed in CCE, NAGPUR VERSUS ULTRATECH CEMENT LTD., [ 2010 (10) TMI 13 - BOMBAY HIGH COURT] . Interior decoration services - HELD THAT:- The appellant has incur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C. EX., HYDERABAD-III VERSUS ITC LIMITED [ 2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT] - The Appellant is eligible for the Cenvat credit availed on the input services such as Catering Service, House Keeping services, Interior decoration services and Garden maintenance service, Construction Service, Repair and maintenance service etc used in guest house and Employee Township situated within the factory premises. Accordingly, the impugned order denying such credit to the Appellant is not sustainable. The Appellant is eligible for the Cenvat credit availed on the 'input services' which are disputed in this appeal - the demand confirmed in the impugned order is set aside. Since the demand itself is not sustainable, the question of charging interest and imposing penalty does not arise - Appeal allowed. - SHRI R. MURALIDHAR, MEMBER(JUDICIAL) AND SHRI K. ANPAZHAKAN, MEMBER(TECHNICAL) Shri Satyanarayan Gupta Ms. Pritha Sarkar, both C.A. for the Appellant (s) Shri P.K.Ghosh, Authorized Representative for the Revenue ORDER The present appeal has been filed by the Appellant M/s Visa Steel Limited against the impugned Order-in-Original dated 28.01.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26,917 26,917 I Supply of Manpower services 37,151 45,671 82,822 Total 21,43,834 33,35,174 54,79,017 4. Regarding the credit availed on services such as Catering Service, House Keeping services, Interior decoration services and Garden maintenance service, the Appellant submits that the said services were used in the manufacturing plant. Hence, Cenvat credit availed on these services amounting to Rs.21,43,834/- used in relation to business activities cannot be denied. In respect of the remaining Rs.33,35,174/-, the Appellant submits that the input services in these cases were used in the guest house and Employee Township. It is their submission that these services were also used in relation to business activities and accordingly, they contended that the credit availed cannot be denied. They submitted various decisions of the Hon ble High Courts and Tribunals in support of their contentions. Accordingly, they prayed for allowing the credit. 5. The Ld. D.R. reiterated the findings of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant case, we observe that the housekeeping services, catering services and interior decoration services are availed at the plant/factory and hence denial of the credit in respect of the said services is not justified for the reasons explained herein below: (i) Housekeeping services : These services are very necessary and vital for keeping the factory in good condition. Hence the expenses incurred towards housekeeping services qualify as input service under CENVAT credit Rules, 2004. In this regard, the Appellant placed their reliance on the following judicial pronouncements: (a) Balkrishna Industries Ltd. Versus Commissioner of C. Ex., Aurangabad [2010 (18) S.T.R. 600 (Tri. - Mumbai)], wherein the Tribunal held that 6 . (c) With regard to plant housekeeping service , the argument of ld. SDR is that the plant can run without housekeeping of the plant. In other terms without toilet and water facilities a plant can run. The argument of the SDR has no force, as providing the facilities of toilet and water are the basic requirement to run the factory and non-providing these facilities may affect the production, hence maintenance of house keeping service is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served from the relied upon case laws that the issue is no more res integra and credit on Canteen Services and House Keeping/Cleaning Services has been held to be admissible. Respectfully following the ratio of the case laws relied upon by the Appellant it is opined that CENVAT Credit on Canteen Services and House Keeping/Cleaning Services has been correctly availed by the Appellant. Accordingly, Appeals filed by the Appellant are allowed (iii) Interior decoration services: The appellant has incurred expense towards interior decoration of various office buildings canteen within the factory premise which is essential for smooth carrying of day to day business activities. Thus, we hold that such expenses incurred by the company also qualify as input service under CENVAT credit Rules, 2004. (iv) Garden maintenance services: In the instant case the Appellant had availed services for maintenance of garden which is essential for the proper functioning and efficiency of a factory, and hence we hold that they are eligible for credit as input services. In this regard, the Appellant placed their reliance on the following judicial pronouncement - Bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in the case of Ferromatik Milacron India Ltd. (supra). 11. We observe that the decisions cited above are squarely applicable in this case. By following the decisions cited above, we hold that the impugned order denying the Cenvat credit availed on the 'input services' Catering Service, House Keeping services, Interior Decoration services and Garden Maintenance services used in the manufacturing plant, is not sustainable. 12. Regarding the Cenvat credit availed on the input services used in relation to the guest house and township situated within the factory premises, We observe that the Appellant incurred the expenses on account of construction of guest house and township for their employees within the premise of the plant. Due to location of the plant, they are under statutory obligation to provide a colony to the workers of the factory, to maintain the continuity of activity of manufacturing. Thus, having colony within the factory premise became indispensable. Similarly, to accommodate business delegates, consultants who used to visit time to time for verification and inspection of the plant, the guest house facility became necessary. We observe that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed in the appellants own case vide Final Order No. 1680/2012-SM(Br) dated 21.12.2012. 2. By following the said decision, I set aside the impugned order and allow the appeal with consequential relief to the appellant (iii) M/S. Dhampur Sugar Mills Ltd vs CCE, Meerut II [Final Order No.A/FO/55373/2013 (Tri New Delhi)], wherein the Tribunal held that 4 .I find that the issue is no more res integra. The Hon ble High Court of Andhra Pradesh in the case of CCE, Hyderabad vs. ITC Ltd. [2012-TIOL-199-HC-AP-ST] has held that staff colony meant for the employee and maintenance of the same as an input services. By applying the same analogy to guesthouse, which is located in the factory it has to be held as having nexus with the business activity of the assessee. Accordingly, I allow the Cenvat credit. 13. By relying on the decisions cited above, we hold that the Appellant is eligible for the Cenvat credit availed on the input services such as Catering Service, House Keeping services, Interior decoration services and Garden maintenance service, Construction Service, Repair and maintenance service etc used in guest house and Employee Township situated within ..... X X X X Extracts X X X X X X X X Extracts X X X X
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