2015 (11) TMI 714 - AT - Service Tax

CENVAT Credit - Cleaning service - Held that - Commissioner (Appeals) when noticed that factory included the space used by technical and administrative staff, he has not made any effort to find out the area occupied by technical and administrative staff. In absence of working of the area occupied, the vague order shall not sustain. In view of the obligation of the appellant under Factories Act, 1948 to keep the factory clean, appellant is entitled to the Cenvat credit of service tax paid on factory cleaning service - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal, stating that the appellant is entitled to Cenvat credit for service tax paid on factory cleaning services due to the legal obligation under Section 11 of the Factories Act, 1948. The order disallowing the credit was deemed weak as it did not consider the area occupied by technical and administrative staff in the factory.