2015 (9) TMI 1399 - AT - Service Tax

Disallowance of CENVAT credit on garden maintenance - Held that - Learned counsel is correct to submit that maintenance of plantation in the factory to prevent air pollution being necessity of law, CENVAT credit only on that aspect to be allowed. If there is any maintenance of garden in the office premises that should not be allowed. Learned authority shall work out the extent of allowance. So far as art work is concerned, it is explained that it is business related expenditure to discharge social responsibility. He is correct to say that for no contrary finding against the appellant nor also the authority has found anything not connected to business activity. Therefore, CENVAT credit on that part is allowed. So far as FOREX money service is concerned, that being relevant for the purpose of export and import and inextricably connected with the business, CENVAT credit of availment of such service is allowed.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed CENVAT credit for maintenance of plantation in the factory area to prevent air pollution. CENVAT credit for art work as business-related expenditure was also allowed. CENVAT credit for FOREX money service related to export and import was allowed. No penalty was imposed due to lack of malafide intent. Appeal was allowed partly.