2013 (1) TMI 409 - AT - Central Excise

Ineligible cenvat credit - service tax on gardening services - Held that - The first appellate authority has relied upon the various judgments to come to a conclusion to hold that appellant is eligible to avail cenvat credit & also taken note of the NOC issued by the Gujarat Pollution Control Board issued vide No. GPCB/CTE/SRT-2030/25604 dated 20.11.2009 specifically laying down the condition that adequate plantation shall be carried out all along the periphery of the industrial premises in such a way that the density of the plantation is at least 1000 trees per acre of the land and a green belt of metres is developed Thus if the condition of the Pollution Control Board is to maintain adequate plantation undoubtedly the respondent herein would require professional services of gardening service providers. Hon ble High Court of Karnataka in the case of Millipore India Pvt. Limited 2011 (4) TMI 1122 - KARNATAKA HIGH COURT has held that cenvat credit cannot be denied to the appellant on the service tax paid on the Gardening Services - in favour of assessee.

Summary

Issues Involved:
Appeal against setting aside the demand of ineligible cenvat credit for gardening services.

Analysis:
The appeal was filed by the Revenue challenging the order setting aside the demand of an amount claimed as ineligible cenvat credit. The respondent had availed cenvat credit for service tax paid by a service provider for gardening services within the factory premises, as required by the Pollution Control Board. The department argued that gardening services had no nexus with the manufacturing activity, citing previous decisions. However, the respondent relied on a High Court decision to support their claim. The first appellate authority considered various judgments and the Pollution Control Board's conditions, which mandated adequate plantation on industrial premises. The Tribunal noted that professional gardening services were necessary to meet these conditions. Citing the High Court decision, the Tribunal held that cenvat credit could not be denied for service tax on gardening services, affirming the lower authority's decision and rejecting the Revenue's appeal.

This judgment primarily dealt with the eligibility of availing cenvat credit for service tax paid on gardening services. The key issue was whether such services, required by the Pollution Control Board for maintaining adequate plantation on industrial premises, could be considered integral to the manufacturing activity, thus allowing cenvat credit. The Tribunal analyzed the arguments presented by both sides and relied on the High Court decision to support the conclusion that the appellant was entitled to avail the cenvat credit for gardening services. The decision emphasized the importance of meeting the Pollution Control Board's conditions and the necessity of professional gardening services to comply with these requirements.

The Tribunal's decision was based on a thorough examination of the facts, legal arguments, and precedents cited by both parties. By considering the specific conditions laid down by the Pollution Control Board and the High Court decision, the Tribunal concluded that the appellant's claim for cenvat credit on gardening services was valid. The judgment highlighted the relevance of expert services in maintaining industrial premises as per regulatory requirements, ultimately upholding the lower authority's decision and rejecting the Revenue's appeal. The case underscored the significance of regulatory compliance and the interpretation of relevant legal provisions in determining the eligibility of cenvat credit for specific services related to industrial activities.