2022 (6) TMI 819 - AT - Service Tax

CENVAT Credit - input services - Cleaning Forwarding Agency Services - Maintenance and Repair Services - Business Auxiliary Services - Operation and Maintenance of Fly Ash System situated at Ukai Thermal Power Station - AMC Services - Management Consulting Engineering and Security Service for Wind Mill Operation Credit - credit denied on the ground that these services have no nexus with the manufacturing activity of the appellant - HELD THAT - The use of the services are not in dispute. As regard the C F agency services the same was disallowed on the ground that the same was used beyond the factory premises. However, the C F Agency s premises is a place of removal and the services received at place of removal should be treated as services received upto the place of removal - reliance can be placed in the case of JK. COTTON SPG. WVG. MILLS CO. LTD. VERSUS SALES TAX OFFICER, KANPUR 1964 (10) TMI 2 - SUPREME COURT - Accordingly, the credit is clearly admissible. Services received at Thermal Power Station - windmill services - HELD THAT - Merely because the services were received outside the factory premises, the credit cannot be disallowed so long it is used in the manufacture of final product. The similar view is applicable in case of the services received for the purpose of windmill services located outside the factory - credit allowed. Housekeeping Services for Cleaning Toilets and Office premises at plant - Garden Maintenance services - Pest Control Services - HELD THAT - All these services are essentially used in the factory in over all operation of the manufacturing activity. Therefore, the cenvat credit is admissible on these services. All these services have been held admissible input service - reliance can be placed in the case of RAMCO CEMENTS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI-IV 2016 (12) TMI 1810 - CESTAT CHENNAI . Each and every input services in question the issue is no longer res integra - all the input services in the present case are held to be admissible input services - Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
- Entitlement to cenvat credit for various services including Cleaning & Forwarding Agency Services, Maintenance and Repair Services, Business Auxiliary Services, Operation and Maintenance of Fly Ash System, AMC Services, and Management Consulting Engineering and Security Service for Wind Mill Operation.

Analysis:
1. Cleaning & Forwarding Agency Services: The appellant claimed credit for these services, arguing that they are related to the manufacturing of the final product. The tribunal found that services received at the C & F Agency's premises, being the place of removal, should be treated as services received up to the place of removal. Citing relevant judgments, the tribunal held the credit to be admissible.

2. Maintenance and Repair Services: The credit for these services was initially denied as they were used outside the factory premises. However, the tribunal ruled in favor of the appellant, stating that as long as the services are used in the manufacture of the final product, the credit is admissible. Citing precedents, the tribunal supported the admissibility of the credit.

3. Operation and Maintenance of Fly Ash System: The tribunal allowed the credit for services related to the Fly Ash System, emphasizing the direct nexus of these services with the manufacturing activity. The fact that the services were received outside the factory premises did not disqualify the credit, as long as they were used in the manufacturing process.

4. AMC Services and Management Consulting Engineering: The appellant successfully argued for the admissibility of credit for these services, citing relevant judgments that supported their position. The tribunal agreed that the credits were valid and had been upheld in previous cases.

5. Housekeeping, Garden Maintenance, and Pest Control Services: The appellant contended that these services were essential for the manufacturing process, and therefore, the cenvat credit should be allowed. The tribunal concurred, referencing various judgments that upheld the admissibility of credits for similar services used in manufacturing activities.

6. Overall Decision: After considering the arguments from both sides and examining the records, the tribunal found in favor of the appellant on all counts. Relying on a multitude of judgments that supported the admissibility of cenvat credits for the services in question, the tribunal set aside the impugned orders and allowed the appeals, granting consequential relief to the appellant.