2016 (10) TMI 232 - AT - Central Excise

Denial of CENVAT credit - manufacturers of Cast Articles of Iron and Aluminium - whether the services are input service eligible for CENVAT credit? - courier service - Held that - the issue already decided in the case of M/s. Servall Engineering Works Pvt. Ltd. Versus CCE, Salem 2016 (5) TMI 889 - CESTAT CHENNAI where it was held that so far as services related to cell phone, courier agency as well as telephone operator services are concerned, it is quite possible as to the use of those services for the purpose of manufacturing and commercial activity of the appellant. Therefore, CENVAT credit claimed in respect of service tax paid thereon are allowed - CENVAT credit allowed on courier service. Noise Monitoring service - Held that - the said service is a pollution control requirement to run the factory. The said equipment is used to control the noise levels in the factory providing an equitable work atmosphere to the workers. The said service used for the welfare of the employees and is essential for the manufacturing activity - credit eligible. O & M of RO plant - Held that - the said service is used for purification of the water used for the manufacturing activity. Manufacturing activity also requires purified water without which the quality of production cannot be maintained. Hence the credit is eligible on the said service. AMC service for pest control equipment - Held that - AMC service for pest control equipment is essential as the said service is used for proper functioning of the factory. It is indispensible in the manufacturing process as it is vital to keep the machines and the manufactured products without the risk of damage - the said service eligible for credit. Appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Whether the appellant is eligible to avail Cenvat credit on various input services including Courier Services, Noise Monitoring Service, O & M for R.O. Plant, and AMC service for Pest Control Equipment.

Analysis:

1. Courier Service:
The Tribunal noted that the issue of Cenvat Credit on courier service was previously addressed in relevant cases. Referring to decisions in Servall Engineering Works Pvt Ltd vs. CCE and M/s. The India Cements Ltd. Vs CCE, the Tribunal concluded that courier service is eligible for credit. Therefore, the appellant is entitled to Cenvat credit for courier services.

2. Noise Monitoring Service:
Regarding noise monitoring service, the Tribunal recognized its importance as a pollution control requirement essential for maintaining a conducive work environment for employees. The service was deemed crucial for the welfare of workers and for the manufacturing activity. Consequently, the Tribunal held that the noise monitoring service is eligible for Cenvat credit.

3. O & M of R.O. Plant:
The Tribunal acknowledged the significance of the O & M service for the purification of water used in the manufacturing process. Given that purified water is essential for maintaining production quality, the Tribunal determined that the credit for O & M of R.O. Plant service is valid.

4. AMC Service for Pest Control Equipment:
In the case of AMC service for pest control equipment, the Tribunal recognized its essential role in ensuring the proper functioning of the factory and safeguarding machines and products from damage. Considering its vital contribution to the manufacturing process, the Tribunal concluded that the AMC service for pest control equipment is eligible for Cenvat credit.

In conclusion, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant, granting consequential relief as per the law. The judgment emphasized the eligibility of the appellant to avail Cenvat credit on the specified services, highlighting their importance for operational efficiency and compliance with pollution control requirements.