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2018 (12) TMI 1167 - AT - Central ExciseCENVAT Credit - input services - Rent-a-Cab Services - Water Treatment - Gardening Service - period pre and post 01.04.2011. Rent-a-Cab services - Held that - For the post amendment period i.e. after 01.04.2011, the above definition was amended to specifically exclude Rent-a-Cab Service, and includes services which are used by a manufacturer, whether directly or indirectly, in or in relation to manufacture of final product and clearance of final products up to the place of removal‛ - Commissioner (Appeals) has rightly disallowed the Credit on Rent-a-Cab Services for the period from December 2011 to October 2012 and the same does not call for any interference - Demand on Rent-a-Cab Service for the period from April 2008 to March 2009 is set aside - Demand on Rent-a-Cab Service for the period from December 2011 to October 2012 is upheld with interest thereon. Water Treatment Service - Held that - The same is utilized by the appellant as per the guidelines or norms of PCB according to which establishment of Effluent Treatment Plant in the factory is a statutory requirement for the treatment of polluted water - credit allowed. Garden Maintenance Services - Held that - The same is required as per the guidelines of the PCB for the purpose of a better work atmosphere - credit cannot be denied. Appeal allowed in part.
Issues: Denial of CENVAT Credit on Rent-a-Cab Services, Water Treatment Service, and Garden Maintenance Service.
Rent-a-Cab Services Issue: The appellant contended that Rent-a-Cab Service falls under the inclusive definition of "input service" under Rule 2(l) of CCR, 2004, even post 01.04.2011. The appellant argued that the service is essential for deploying employees for work at odd hours or official duties within the city. The Tribunal noted that the appellant was eligible for CENVAT Credit on Rent-a-Cab Services for the period prior to 01.04.2011. However, post-amendment, Rent-a-Cab Service was specifically excluded from the definition of "input service." Therefore, the demand for Rent-a-Cab Services for the period from December 2011 to October 2012 was upheld. Water Treatment and Garden Maintenance Services Issue: The appellant justified availing CENVAT Credit on Water Treatment and Garden Maintenance Services, stating their necessity for statutory compliance and enhancing productivity. The Tribunal observed that Water Treatment Service was mandatory as per Pollution Control Board norms, and Garden Maintenance Service contributed to a better work atmosphere. Citing precedents, the Tribunal concluded that the appellant rightly availed Credit on these services. The demand raised on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015 was set aside. Overall Decision: The Tribunal partially allowed the appeals by setting aside the demand on Rent-a-Cab Service for the period from April 2008 to March 2009 and on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015. However, the demand on Rent-a-Cab Service for the period from December 2011 to October 2012 was upheld with interest. The Tribunal's decision was pronounced in open court on 19.12.2018.
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