2018 (5) TMI 16 - AT - Central Excise

CENVAT credit - input services - landscaping services - catering services - event management services - Held that - Relying upon the judgement of the Tribunal in the case of Castrol India Ltd 2013 (9) TMI 709 - CESTAT AHMEDABAD where it was held that credit of service tax paid on event management services can be availed - credit allowed. Landscaping services - Held that - it is seen that there is a specific clause for maintaining green belt in the form of well developed gardens in 50 acres around the Plant. If such a mandatory requirement needs to be fulfilled, the appellant was correct in arguing that expert help was obtained to do the work, on which service tax liability is discharged - credit allowed. Out-door catering services - Held that - the CENVAT credit availed on such invoices which were issued prior to 01.04.2011 for the services availed prior to 01.04.2011 cannot be denied to the appellant - the services of out-door catering were availed and received by the appellant prior to 01.04.2011, hence, they are eligible for the availment of CENVAT credit of such service tax paid - credit allowed. Appeal allowed - decided in favor of appellant.

Summary

Issues:
- CENVAT credit on landscaping services
- CENVAT credit on out-door catering services
- CENVAT credit on event management services

Analysis:

CENVAT credit on landscaping services:
The appellant, a manufacturer of iron ore pellets, availed CENVAT credit on various input services, including landscaping services. The revenue authorities contested the CENVAT credit availed on landscaping services, arguing that it did not qualify as an input service. The appellant relied on a statutory requirement from the Andhra Pradesh Pollution Control Board mandating the maintenance of a green belt around the factory premises. The Tribunal, referencing a judgment by the Hon'ble High Court of Karnataka, held that the appellant was eligible to avail CENVAT credit on landscaping services as the expenses were incurred for compliance with the law and essential for factory operations.

CENVAT credit on out-door catering services:
Regarding the CENVAT credit on out-door catering services, the appellant claimed credit for services rendered prior to 01.04.2011, even though the invoices were settled after that date. The revenue authorities contended that the credit should be disallowed post the specified date. The Tribunal examined the invoices and found that the services were indeed provided before 01.04.2011, making the appellant eligible for CENVAT credit on the service tax paid for out-door catering services.

CENVAT credit on event management services:
The issue of CENVAT credit on event management services was also raised. The appellant cited a previous order by the Tribunal where CENVAT credit on event management services was allowed. Relying on this precedent and the judgment in the case of Castrol India Ltd, the Tribunal upheld the appellant's right to avail CENVAT credit on event management services.

In conclusion, the Tribunal allowed the appeals, setting aside the impugned order and granting the appellant the right to avail CENVAT credit on the contested services.