2018 (5) TMI 1051 - AT - Central Excise

CENVAT credit - input services - dispose of hazardous waste and chemicals - It is the case of Revenue that CENVAT credit availed is incorrect when the hazardous waste is not disposed off in the factory premises but at the premises of the service provider - Held that - an identical issue came up before the Tribunal in the case of India Pesticides v Commissioner of Central Excise & Service Tax 2016 (8) TMI 724 - CESTAT ALLAHABAD wherein it was held that CENVAT credit can be ailed of the service tax paid by such service providers - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Eligibility to avail CENVAT credit of service tax paid by the service provider for disposing of hazardous waste and chemicals.

Analysis:
The appeal was against an Order-in-Appeal passed by the Commissioner of Central Tax regarding the eligibility of availing CENVAT credit for service tax paid by the service provider for hazardous waste disposal. The Revenue contended that the CENVAT credit was incorrect as the hazardous waste was disposed of at the service provider's premises, not the factory premises. However, the appellant argued that removing hazardous waste from the factory premises was essential to comply with permissions from the Maharashtra Pollution Control Board. The appellant claimed they had to clear hazardous residue to an authority nominated by MPCB for safe disposal, for which they paid service charges.

Upon reviewing the records, it was noted that the facts were undisputed. The authorities relied on the definition of 'input service' under Rule 2(l) of the CENVAT Credit Rules, 2004, to deny the credit. However, previous Tribunal decisions, such as Tube Investment India Ltd v. Commissioner of Service Tax and India Pesticides v Commissioner of Central Excise & Service Tax, held that CENVAT credit could be availed for service tax paid by service providers. The Tribunal found no reason to deviate from this established view.

Consequently, the Tribunal held that the impugned order was unsustainable and set it aside, allowing the appeal. The decision was based on the precedent set by previous Tribunal judgments, confirming the eligibility to avail CENVAT credit for service tax paid by service providers for hazardous waste disposal.