2015 (2) TMI 659 - AT - Service Tax

CENVAT Credit - Garden Maintenance service - Nexus with manufacturing activity - Held that - As credit has been allowed to the appellant in their own case 2012 (4) TMI 499 - CESTAT, MUMBAI , 2011 (11) TMI 56 - CESTAT, MUMBAI and 2009 (12) TMI 196 - CESTAT, MUMBAI for earlier period by different Benches of this Tribunal, as a matter of judicial discipline. I have no hesitation in allowing the credit. Accordingly, the impugned order is set aside - Decided in favour of assessee.

Summary

Issues: Disallowance of input service credit on garden maintenance services.

In this judgment by the Appellate Tribunal CESTAT MUMBAI, the issue revolved around the disallowance of input service credit on garden maintenance services by the Commissioner. The Commissioner based the disallowance on the premise that there was no nexus between the input service and the output service, citing judgments such as Maruti Suzuki vs. CCE 2009 and Manikgarh Cement Works 2010. These judgments emphasized the requirement that any service claimed as an input service credit must be used directly or indirectly in relation to the manufacture of final products or clearance of such products. The Tribunal noted that each case must be decided based on its merits.

The Tribunal heard arguments from both sides, with the appellant's counsel highlighting that credit on garden maintenance had been allowed in their own case in previous orders by the Mumbai Bench and in cases such as Commr. of C.Ex, & Service Tax (LTU) vs. Lupin Ltd. The Assistant Commissioner reiterated the findings of the Commissioner (Appeals) regarding the disallowance.

Upon careful consideration, the Tribunal, following the principle of judicial discipline, decided in favor of the appellant due to the allowance of credit in their own case by different Benches of the Tribunal for earlier periods. Consequently, the impugned order disallowing the credit was set aside, and the appeal was allowed.