2014 (1) TMI 89 - AT - Service Tax

CENVAT Credit - Architecture services - Eligibility of Credit - Credit stands denied on the ground that it is not essential part for obtaining water for manufacture of the aerated water and carbonated beverages - Held that - As the appellants are in the manufacture of carbonated beverages and aerated water, water is an important input. Putting up the rain water harvesting system is integrally connected to harnessing water. The architectural services having been used for putting in place the said rain water harvesting system cannot be treated as having no nexus with the business activities of the appellant which relates to manufacture of carbonated beverages and aerated water. Therefore, the appellants are eligible for the credit taken by them - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Bangalore allowed the appeal of the appellants, who were engaged in manufacturing sweetened carbonated beverages and aerated waters, regarding the eligibility of credit of Service tax amounting to Rs. 72,594 for architecture services used in setting up a rain water harvesting system. The Tribunal held that the architectural services were essential for the business activities of the appellants and allowed the credit.