2019 (7) TMI 1169 - AT - Central Excise

CENVAT credit - input services - pest control services availed at the godowns and depots of the appellant - HELD THAT - The issue decided in appellant own case M/S. HINDUSTAN COCA COLA BEVERAGES PVT. LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE CHENNAI OUTER 2019 (2) TMI 404 - CESTAT CHENNAI where it was held that the pest control services availed by the appellant are input services - credit allowed. There is no case made out by the Revenue to sustain the penalty levied and confirmed under Rule 15 (1) of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Appeal allowed - decided in favor of appellant.

Summary

Issues: Denial of CENVAT Credit on pest control services

Analysis:
1. The only issue in the case pertains to the denial of CENVAT Credit on pest control services availed at the godowns and depots of the appellant.
2. The appellant's advocate referred to a previous decision by the same Bench of the Tribunal in the appellant's own case for the period from January 2011 to December 2015, where a similar issue was decided in favor of the assessee.
3. The Revenue's representative opposed the contentions, relying on the findings of the lower authorities.
4. The Tribunal noted that the issue had already been considered and decided in favor of the assessee in the appellant's previous case. The Tribunal found that pest control services for keeping premises pest-free, especially when storing products like sugar for human consumption, qualify as input services eligible for credit.
5. The Tribunal held that the denial of credit was unjustified and set aside the impugned order. The penalty levied by the Revenue was also ordered to be deleted as there was no case made out to sustain it.
6. The appeal was allowed with consequential benefits, if any, as per the law.

This judgment highlights the importance of considering the nature of services availed and their direct relevance to the production process when determining the eligibility for CENVAT Credit. The decision emphasizes the need for consistency in applying legal principles and previous rulings to ensure fair treatment of taxpayers in similar situations.