2017 (4) TMI 549 - AT - Central Excise

CENVAT credit - whether the CENVAT credit is admissible on garden services in respect of maintenance of garden located within the factory premises of the appellant? - Held that - the credit has been allowed in various judgments on the garden services - it was brought on record that the maintenance of garden is statutory requirement under the Maharashtra State Pollution Control Board - CENVAT credit admissible - appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether cenvat credit is admissible on garden services for maintaining a garden within the factory premises?

Analysis:

The appellant argued that maintaining the garden within the factory premises is a statutory requirement imposed by the Maharashtra State Pollution Control Board. The appellant's representative cited previous judgments where credit for similar services had been allowed. It was emphasized that the garden's maintenance is essential for running the factory, where manufacturing activities take place.

The revenue, represented by the Supdt. (AR), relied on specific judgments to support their position. However, the presiding Member (Judicial) carefully considered both sides' submissions.

Upon review, the Member found that the maintenance of the garden is indeed a statutory requirement as per the Maharashtra State Pollution Control Board regulations. The Member noted that previous judgments had allowed similar credits for garden services. In contrast, the judgments cited by the revenue did not consider the statutory requirement aspect. Therefore, the Member distinguished those judgments and held that cenvat credit for garden services within the factory premises is admissible.

In conclusion, the impugned order was set aside, and the appeal was allowed based on the statutory requirement and the allowance of similar credits in previous judgments.