2010 (7) TMI 178 - AT - Service Tax

Cenvat Credit Input Service - The Revenue is in appeal against the extending of Cenvat credit of Service tax paid on services of maintenance of water coolers installed in the factory of the assessees and House Keeping services. Held that provision and maintenance of water coolers essential requirement under Factory Act. House Keeping service necessary and vital for keeping factory in good condition. Thus benefit of credit rightly extended in impugned order.

Summary

The Appellate Tribunal CESTAT, Chennai upheld the extending of Cenvat credit for service tax paid on maintenance of water coolers and House Keeping services in a factory, citing the essential nature of these services under the Factories Act. The decision was supported by the case of Balkrishna Industries Ltd. v. CCE Aurangabad. The appeal by the Revenue was dismissed.