2020 (1) TMI 712 - AT - Central Excise

CENVAT Credit - input services - House Keeping Service - C F Services - Warehousing maintained at C F Agent - HELD THAT - There is no dispute about the nature of service and use thereof. Housekeeping service was used in the appellant s factory and/or Head Office. The House keeping service is used to up keep the property of the manufacturer which is essential requirement for manufacturing unit under the Factories Act, therefore, the same is qualified as input service. C F Service - HELD THAT - Since the same is related to the warehousing at C F Agent where the finished goods is stored before clearance thereof and in case of goods sold through C F the place of removal stand extended up to the premises of C F Agent - thus, all the services related to clearance of the goods up to the place of removal is eligible input service. The appellant are entitled for the Cenvat Credit in respect of House Keeping Service C F service - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Entitlement of Cenvat Credit for input services - House Keeping Service and C & F Services.

Analysis:

1. House Keeping Service:
The issue revolved around the eligibility of the appellant for Cenvat Credit concerning House Keeping Service used at their factory and Head Office. The learned counsel argued that the service is an admissible input service as it is crucial for maintaining the property, a requirement under the Factories Act for a manufacturing unit. The judgments cited by the counsel supported the appellant's case. The Hon'ble Member (Judicial) examined the nature of the service and its usage, concluding that the House Keeping Service qualifies as an input service. The judgment cited further reinforced the appellant's entitlement to the credit for this service.

2. C & F Services:
Regarding C & F Services, the appellant claimed credit as the service was related to warehousing at the C & F Agent, considered one of the places of removal. The counsel argued that any service used up to the place of removal should be deemed an admissible input service. Citing relevant judgments, the counsel supported the appellant's claim. The Hon'ble Member (Judicial) analyzed the connection of C & F Services with the warehousing at the C & F Agent, where finished goods are stored before clearance. In cases of goods sold through C & F, the place of removal extends up to the C & F Agent's premises. Consequently, all services related to goods clearance up to the place of removal were deemed eligible input services. The judgment supported the appellant's entitlement to Cenvat Credit for C & F Services.

In conclusion, after hearing both sides and reviewing the records, the Hon'ble Member (Judicial) found no dispute regarding the nature and use of the services. The House Keeping Service was essential for maintaining the property, meeting the requirements under the Factories Act. Similarly, C & F Services were crucial for goods clearance up to the place of removal, which extended to the C & F Agent's premises. Therefore, the appellant was deemed entitled to Cenvat Credit for both House Keeping Service and C & F Services. As a result, the impugned order was modified accordingly, and the appeal was allowed.