2016 (10) TMI 1288 - AT - Central Excise

CENVAT Credit - input services - house keeping services - HELD THAT - The services availed comprised house-keeping activities like cleaning and washing the canteen, maintenance of drum plant, collecting papers and delivering to various sections, recording and sorting and conveyance hiring. None of the above activities are able to be demonstrated to be disintegrated to manufacturing activity carried out by the appellant. In absence of any cogent evidence to show that such services were not essential input. Cleaning services for canteen - HELD THAT - Cleaning Services availed for Canteen was to upkeep that under the Factories Act, 1948. Maintenance of drum plant was also an obligation to be discharged under Factories Act - appellant's claim of Cenvat credit does not appear to be unjustified. Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal, stating that the services claimed for Cenvat credit were essential input services related to house-keeping activities and maintenance, and the disallowance by the Commissioner (Appeals) was unreasoned. Cleaning services for the canteen and maintenance of the drum plant were deemed essential under the Factories Act, 1948.