2020 (4) TMI 378 - AT - Central Excise

CENVAT Credit - input services - Management maintenance and Repair of AC - Services used for Maintenance of Garden - GTA outward for transport (cargo handling of gold) - HELD THAT - As per explanation made by learned counsel all these services are used in or in relation to the activity of manufacture of final product. There are direct judgments under which these services were held to be input services - In the case of M/S IPCA LABORATORIES LTD. VERSUS CGST CENTRAL EXCISE CUSTOMS INDORE 2019 (4) TMI 988 - CESTAT NEW DELHI the Tribunal held that the garden service is an input services. Services of GTA outward for transport of gold - HELD THAT - On going through the relevant invoice of service provided to M/s Brinks India (P) Ltd. the service is not for GTA but it is for storage and handling charges at vaults for safe custody of gold which is excisable good and the same is cleared on payment of duty. Therefore service related to storage of excisable goods is an input service. All the three services are falling within the definition of input service provided under Rule 2(l) of Cenvat Credit Rules 2004 - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to Cenvat credit for management, maintenance, and repair of AC, services used for maintenance of the garden, and GTA outward for transport of gold.

Management, maintenance, and repair of AC:
The appellant argued that these services are directly related to the manufacturing activity in the factory as the ACs are essential for maintaining proper temperature and a pollution-free environment. The counsel cited relevant judgments to support the claim. The Tribunal agreed, referencing previous cases where similar services were considered input services for manufacturing activities.

Services used for Maintenance of Garden:
The appellant contended that maintaining the garden within the factory premises was necessary due to the hazardous atmosphere of being a copper plant, as required under the Pollution Control Act. The appellant argued that this service is essential for the smooth running of the factory. The Tribunal referred to past judgments where garden maintenance services were considered input services for manufacturing activities.

GTA outward for transport (cargo handling of gold):
The appellant argued that the GTA service for transport was, in fact, a storage service for handling and storing gold bars in safety vaults before clearance on payment of duty. The appellant claimed that this service was directly related to the manufacturing process of excisable goods. The Tribunal examined the invoices and found that the service was indeed for storage and handling charges for safe custody of excisable goods, leading to the conclusion that it qualified as an input service under the Cenvat Credit Rules.

In conclusion, the Tribunal found that all three services in question were used in or in relation to the manufacturing activity of the final product, based on the explanations provided by the appellant and the supporting judgments cited. The Tribunal set aside the impugned order and allowed the appeal, stating that the services fell within the definition of input services under the Cenvat Credit Rules, 2004.