9911796707
TMI Blog2014 (9) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... ase are that appellant is a manufacturer of Agro Products falling under chapter 38 of CETA 1985. The finished goods under the Chapter heading 38 is notified goods and their valuation is being determined under Section 4A of the Central Excise Act, 1944. The appellant took the benefit of the Cenvat credit on input, and capital goods in terms of the provisions of the Cenvat Credit Rules, 2004 complying with the procedures laid down therein. They also took cenvat credit on the Service Tax paid on various Input Services. During the audit conducted under EA-2000 scheme, it was observed by the audit party that during the period involved in the instant case, the appellant had availed cenvat credit wrongly totally Rs. 13,06,717/- and Rs. 52,447/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 & 28.6.2012 and penalties were imposed on the ground that the assessee has failed to substantiate their claim with documentary evidence. The assessee has also failed to prove that the cost of supply of food in the factory canteen has formed a part of the assessable value of the excisable goods during the material period and therefore such services are not within the ambit of input services and hence not sustainable. The assessee should take cenvat credit only on those input services received by him and used in, or in relation to manufacture of his final product. 2.3 Being aggrieved, the appellant preferred the appeals before the Commissioner (Appeals), who upheld the order of the adjudicating authority and dismissed the appeals. 2.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of workers and other details of workers. From the details, referred in the said Forms, it would be found that at the relevant time, in the appellant's company, more than 200 workers were working. 3.3 The appellant submits that during the personal hearing, when they submitted the affidavit, in terms of the ratio of the judgment of High Court of Bombay in case of Ultratech Cements Ltd., the appellate authority had directed to submit the Chartered Accountant Certificate but never directed to provide any document which shows that more than 200 workers were working at the relevant time. If the appellate authority would have directed to submit such document along with CA certificate, the appellant would definitely have produced the same. Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and hence the same are used in relation to the manufacture of the final product and accordingly the same should be treated as input service in view of the Apex Court decision in the case of Indian Farmers Fertiliser Co-operative Ltd. v. CCE reported in 1996 (86) ELT 177 (S.C.). The Apex Court in the above case held that the pollution control equipments/devices are treatable as part and parcel of the manufacturing activity. In the case before the Apex Court, the items involved were equipments and devices which were used to control the pollution and accordingly the Apex Court held that the same are to be treated as part and parcel of the manufacturing activity. 3.6 In the instant case, services such as cleaning/maintenance of garden/trees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a part of the cost of the catering services from their employees, it was submitted by the learned Counsel that they had recovered part of the cost. However, they have reversed proportionate amount of CENVAT Credit to the extent of credit involved in the cost of food recovered from the employees/worker, on 7.10.2012, vide PLA Entry No. 20, which is after passing of the order confirming the demand but before the appellate authority's order. This fact is also noted in the lower appellate authority's order. Following the ratio of the Hon'ble Bombay High Court in Ultratech Cement Ltd. (supra), I hold that the appellants are eligible to avail CENVAT Credit on Garden Maintaining Services and Canteen services. Accordingly, I set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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