2020 (5) TMI 609 - AT - Central Excise

CENVAT Credit - input services - Garden maintenance - housekeeping within the factory premises - HELD THAT - The issue regarding admissibility of CENVAT Credit in respect of garden maintenance is squarely covered by the decision of Tribunal in the case of M/S NHAVA SHEVA INTERNATIONAL CONTAINER TERMINAL PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIGAD 2017 (4) TMI 805 - CESTAT MUMBAI where it was held that It is apparent that credit for the sewage treatment plant and for the garden maintenance cannot be denied as the same are statutory requirement for operating the Port - credit allowed. House Keeping - HELD THAT - The consent obtained from the Pollution Control Committee by the appellant is subject to the condition that the appellant shall maintain good housekeeping in the factory premises. Thus, maintenance of good housekeeping is requirement to run the factory. Hence, the credit on same count cannot be denied. Penalty is set aside - Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
1. Denial of Cenvat Credit by KEC International Ltd.
2. Imposition of penalty on Shri Tarun Santra.
3. Liability of CENVAT credit on Garden maintenance and housekeeping within the factory premises.

Analysis:

Denial of Cenvat Credit by KEC International Ltd.:
The appeal was filed by KEC International Ltd. against the denial of Cenvat Credit. The counsel for the appellant argued that the issue was covered by the decision of the Madras High Court in the case of M/s Rane TRW Steering Systems Ltd. The counsel also referenced a Tribunal decision in the case of Nhava Sheva Intl. Container Terminal (P.) Ltd. The appellant had obtained permission from the Pollution Control Department contingent upon maintaining good housekeeping in the factory. The Tribunal found that the issue of admissibility of CENVAT Credit for garden maintenance was covered by the decision in the Nhava Sheva Intl. Container Terminal (P.) Ltd. case. The impugned order was set aside on this ground, and the appeal was allowed.

Imposition of Penalty on Shri Tarun Santra:
Shri Tarun Santra appealed against the imposition of a penalty. The Authorized Representative for the Revenue relied on the impugned order. However, the Tribunal, after careful consideration, set aside the penalty, and the appeal was allowed.

Liability of CENVAT credit on Garden Maintenance and Housekeeping:
Regarding the admissibility of CENVAT credit on housekeeping, it was noted that the appellant's consent from the Pollution Control Committee was subject to the condition of maintaining good housekeeping in the factory premises. The Tribunal concluded that maintaining good housekeeping was a requirement to operate the factory, and therefore, the credit on this count could not be denied. Consequently, the appeal on this ground was allowed.

In conclusion, the Tribunal allowed the appeals, set aside the penalty, and held that the CENVAT credit for garden maintenance and housekeeping within the factory premises was admissible based on the legal requirements and precedents cited during the proceedings.