2013 (12) TMI 1128 - AT - Service Tax

Denial of Cenvat credit on garden maintenance service Waiver of Pre-deposit Held that - Following Commissioner vs. Millipore India Pvt. Ltd. 2011 (4) TMI 1122 - KARNATAKA HIGH COURT -Activities relating to business and any services rendered in connection there with, would form part of the input services - landscaping of factory garden would certainly fall under the concept of modernization, renovation, repair, etc. of office premises thus landscaping of factory garden to be an input service modernisation , renovation , repairs , etc. are specified ingredients of input service defined under Rule 2(l) of the CENVAT Credit Rules, 2004 waiver of Pre-deposits allowed till the disposal Stay granted.

Summary

Issues:
Waiver of pre-deposit and stay of recovery against denial of CENVAT credit for garden maintenance service.

Analysis:
The appellant filed an application seeking waiver of pre-deposit and stay of recovery regarding the denial of CENVAT credit for garden maintenance service. The Tribunal found a prima facie case for the appellant based on certain key factors. Firstly, it was noted that the appellant's industrial plant operation was subject to conditions imposed by the Karnataka State Pollution Control Board, including the requirement to undertake afforestation measures to maintain a green belt around the premises. This condition was crucial for the appellant to operate their plant legally. Secondly, the Tribunal referred to a judgment by the Hon'ble High Court of Karnataka in a similar case, where it was held that landscaping of a factory garden falls under the concept of modernization, renovation, repair, etc., of office premises, thus qualifying as an 'input service'. The Tribunal highlighted that the High Court's ruling provided clarity on the inclusion of landscaping and gardening activities as part of input services under the CENVAT Credit Rules, 2004. The Additional Commissioner (AR) had opposed the plea for waiver and stay, arguing a lack of nexus between the manufacturing activity and landscaping. However, the Tribunal emphasized that the specified ingredients of 'modernisation', 'renovation', 'repairs', etc., as per the CENVAT Credit Rules, supported the inclusion of landscaping services as an input service.

In conclusion, the Tribunal granted the waiver of pre-deposit and stay of recovery as requested by the appellant. The decision was based on the prima facie case established by the appellant's essential need for maintaining a green belt around their industrial premises as per regulatory requirements and the legal precedent set by the High Court regarding the classification of landscaping activities as input services. The Tribunal's ruling aligned with the interpretation of the CENVAT Credit Rules, emphasizing the importance of landscaping and gardening services in the context of modernization and maintenance of industrial premises.