2017 (10) TMI 196 - AT - Central Excise

CENVAT credit - excise duty paid on TMT bars - service tax paid on gardening and maintenance services and painting of the plant - Held that - appellant is eligible to avail the CENVAT credit in respect of all the three services received by him - the decision in the case of India Cement Ltd. 2013 (5) TMI 403 - CESTAT CHENNAI , and U.G. Sugars & Industries Ltd. 2011 (6) TMI 627 - CESTAT, NEW DELHI relied upon - appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of CENVAT credit on central excise duty paid on TMT bars and service tax paid on gardening and maintenance services and painting of the plant.

Analysis:
The appeal was against Order-in-Original denying CENVAT credit on central excise duty and service tax. The adjudicating authority held the appellant ineligible for credit as activities were not related to manufacturing. The appellant argued TMT bars were used for modifications in mills, not disputed by the authority. Regarding gardening and maintenance services, the Pollution Control Board mandated a green belt around the cement plant. The appellant complied by engaging professionals for gardening and maintenance, incurring service tax. The tribunal found the appellant eligible for CENVAT credit based on precedents like India Cement Ltd., CCE Bangalore Vs Millipore India Pvt Ltd., and U.G. Sugars & Industries Ltd.

Decision:
The tribunal, noting the settled nature of the issue, set aside the impugned order, declaring it unsustainable. The appeal was allowed, and the impugned order was overturned.