2015 (8) TMI 1243 - AT - Service Tax

Denial of CENVAT Credit - Rent-a-cab service and Gardening service - Held that - Rent-a-cab Operator service or Bus operator services was utilized by them for transportation of their staff members, officers and employees from their residence to the factory and from the factory to the residence and for many other works undertaken by their staff members, officers engaged in the business activity of production and sale of finished goods. - Tribunal in the case of Mundra Port & SEZ Ltd vs CCE Rajkot 2008 (9) TMI 117 - CESTAT AHEMDABAD allowed the CENVAT Credit on Rent-a-cab service on the identical facts. It is seen that the Tribunal in the case of M/s ISMT Ltd Vs CCE Aurangabad 2009 (12) TMI 124 - CESTAT, MUMBAI , held that a good garden creates a better atmosphere and environment which increases the working efficiency and CENVAT Credit was allowed. - Impugned order set aside - Decided in favour of assessee.

Summary

Issues: Denial of CENVAT Credit on Rent-a-cab service and Gardening service for the period 2007-2008 to 2011-2012.

The judgment delivered by Mr. P.K. Das at the Appellate Tribunal CESTAT AHMEDABAD pertains to an appeal filed by the appellant against the denial of CENVAT Credit amounting to &8377; 2,90,599.00 for Rent-a-cab service and Gardening service utilized during the period 2007-2008 to 2011-2012. The appellant argued that the Rent-a-cab service was used for transportation of staff members to and from the factory and for various business-related activities. Additionally, the gardening service was employed for pollution control and maintaining the environment of the factory premises. On the contrary, the Ld. Authorized Representative for Revenue contended that these services lacked a direct nexus to the manufacturing activity, with gardening not being essential for pollution control.

Upon reviewing the records and considering the arguments presented, Mr. P.K. Das referenced precedents to support the allowance of CENVAT Credit in similar cases. Citing the case of Mundra Port & SEZ Ltd vs CCE Rajkot, where CENVAT Credit on Rent-a-cab service was permitted under comparable circumstances, and the case of M/s ISMT Ltd Vs CCE Aurangabad, which highlighted the positive impact of a well-maintained garden on the working environment and efficiency, the judgment concluded in favor of the appellant. Consequently, the impugned order was set aside, and the appeal was allowed, granting the appellant the sought-after CENVAT Credit for the Rent-a-cab and Gardening services utilized during the specified period.