2018 (4) TMI 53 - AT - Central Excise

CENVAT Credit - input services - manpower services - denial on the ground that the invoices issued by the supplier of service has not been mentioned the registration number - Held that - manpower used for cleaning service is sought to be denied as the same is no input service as per Rule 2(l) of the CCR 2004. The said reasoning to deny the CENVAT Credit is against the wish of Hon ble Prime Minister of India who had initiated Swachchha Bharat Abhiyan on 2nd October 2014 to make the country clean - cleaning service is directly relating to the manufacturing activity of the appellant. Scope of SCN - Held that - learned Commissioner (Appeals) has sought to deny the CENVAT Credit on the premise that service provider has not mentioned registration number in the invoice. The same is not a ground for rejection of the CENVAT Credit in the SCN - learned Commissioner (Appeals) has gone beyond the scope of SCN. Appeal allowed - decided in favor of appellant.

Summary

Issues:
- Denial of CENVAT Credit on manpower services due to missing registration number on invoices.
- Eligibility of CENVAT Credit for various services provided by the appellant.

Analysis:

1. Denial of CENVAT Credit due to missing registration number:
The appellant appealed against an order denying CENVAT Credit on manpower services as the supplier's invoices did not mention the registration number. The Commissioner (Appeals) upheld the denial based on this ground. However, the Tribunal found that the absence of the registration number was not a valid reason for rejecting the credit, as it was not a part of the show-cause notice. The Tribunal concluded that the Commissioner had overstepped the scope of the notice by considering this issue, thereby deeming the denial of credit unjustified.

2. Eligibility of CENVAT Credit for various services:
The Tribunal examined the nature of services provided by the appellant, including trainee services, gardening services for pollution control, material handling services, and cleaning services. It was established that maintaining a garden and handling materials were essential for the factory's operation as per pollution control guidelines. Additionally, the cleaning service was deemed crucial for manufacturing activities, aligning with the 'Swachchha Bharat Abhiyan' initiated by the Prime Minister to promote cleanliness. The Tribunal held that these services were directly related to the manufacturing process, making the appellant eligible for input service credit on them. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting consequential relief to the appellant.

In conclusion, the Tribunal's judgment clarified the eligibility of CENVAT Credit for various services provided by the appellant, emphasizing the importance of services like cleaning, material handling, and gardening for manufacturing operations. The Tribunal also highlighted that the absence of a registration number on invoices should not be a sole reason for denying credit if not specified in the show-cause notice, ensuring a fair assessment of credit eligibility.