2018 (10) TMI 691 - AT - Central Excise

CENVAT Credit - input services - hiring of male nurse for providing medical services inside the factory premises - Housekeeping services - hiring of tractor. Hiring of male nurse - Held that - The credit availed on such services is eligible - reliance placed in the case of Jaypee Sidhi Cement Plant Vs. Commissioner of Central Excise 2016 (7) TMI 348 - CESTAT NEW DELHI , where it was held that the posting of Doctors and Nursing staff is at the behest of the appellant in order to comply with statutory obligation under the Factories Act, 1948 and Mines Act 1952 and credit is to be allowed - credit allowed. Housekeeping services - Held that - The housekeeping service, road cleaning service etc. are availed by the appellant for keeping the factory as well as the roads in a clean and hygienic manner as also as a part of the upkeep of the factory premises. The white washing services were also availed for renovation and upkeep - the services would qualify as input services and therefore are eligible for credit - credit allowed. Hiring of tractor for movement of goods from one destination to other - Held that - The exclusion part in Clause B in the definition of input service does not allow the credit availed on motor vehicles - Since the motor vehicles are not established to be capital goods for the service provider, the credit availed with respect to hiring of tractor is not eligible and disallowance of CENVAT credit upheld. Appeal allowed in part.

Summary

Issues:
Denial of input service credit on various services including hiring of male nurse, housekeeping, road cleaning, painting, professional services, plantation work, drainage cleaning, and tractor for weigh feeder calibration.

Analysis:

1. Hiring of Male Nurse:
The appellant argued that the hiring of a male nurse was for providing medical services within the factory premises as mandated by the Factories Act. Citing precedents, the appellant contended that such services are eligible for input service credit. The tribunal agreed, allowing the credit for hiring the male nurse.

2. Housekeeping, Road Cleaning, Painting, Professional Services, Plantation Work, Drainage Cleaning:
The appellant justified availing these services for maintaining cleanliness, hygiene, and compliance with regulations within the factory premises. The tribunal found these services essential for upkeep and compliance, qualifying them as input services eligible for credit. Consequently, the credit for these services was allowed.

3. Tractor for Weigh Feeder Calibration:
The appellant hired a tractor for moving goods within the factory premises. The respondent argued that the exclusion clause in the definition of input services does not permit credit for motor vehicles. The tribunal concurred, disallowing the credit for hiring the tractor as it did not qualify under the definition of input services due to the exclusion clause.

4. Decision and Modification:
After considering arguments from both sides, the tribunal upheld the denial of credit for hiring the tractor but allowed credit for other services. The impugned order was modified accordingly, partially allowing the appeal with consequential relief as applicable.

This detailed analysis of the judgment highlights the arguments presented by both parties, the legal principles applied, and the tribunal's decision on each issue concerning the denial or allowance of input service credit for various services.