2016 (12) TMI 334 - AT - Central Excise

Demand - wrongful availment of CENVAT credit - housekeeping and gardening maintenance services - Held that - I find that the issue is no more res-integra and covered by the judgment of Tribunal in the case of Maruti Suzuki Ltd. 2015 (10) TMI 113 - CESTAT NEW DELHI , where it was held that services such as cleaning/maintenance of garden/trees, plantation, etc. are used to control the pollution created by the industry and the same could be considered as input services used in relation to manufacture of final product - appeal allowed - credit allowed - demand set aside - decided in favor of appellant-assessee.

Summary

Issues:
Appeal against demand notice for recovery of CENVAT Credit related to service tax on housekeeping and gardening services.

Analysis:
The case involves an appeal against a demand notice for recovery of CENVAT Credit amounting to ?78,210 on the grounds of incorrect availment of credit related to service tax paid for housekeeping and gardening maintenance services. The Appellants, engaged in manufacturing excisable goods, were issued a demand notice in July 2011, which was confirmed upon adjudication, leading to the imposition of a penalty. The Appellant's appeal before the Commissioner (Appeals) was rejected, prompting the present appeal before the Appellate Tribunal.

The Appellant's representative argued that the eligibility of service tax on housekeeping and gardening services had been deemed admissible by previous judgments, citing the case of CCE Vs. Maruti Suzuki India Ltd. and the judgment of the Hon'ble Madras High Court in the case of CCE LTU Chennai Vs Rane TRW Steering Systems Ltd. The Revenue's representative reiterated the findings of the Commissioner (Appeals).

The Tribunal, after considering the arguments presented, concluded that the issue had already been settled by the judgment of the Hon'ble Madras High Court in the case of Rane TRW Steering Systems Ltd and the Tribunal's decision in the case of Maruti Suzuki Ltd. As a result, the impugned order was set aside, and the appeal was allowed with any consequential relief as per law.

In summary, the Appellate Tribunal ruled in favor of the Appellant, setting aside the demand notice for recovery of CENVAT Credit related to service tax on housekeeping and gardening services based on the precedent set by previous judgments.