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TMI Blog2017 (7) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... oval - credit allowed. Similarly, the cenvat credit on services procured for construction of secured land fill and jerofix storage pond, which are used for disposal of industrial waste and polluted water in compliance with Environmental laws is an input service received by the manufacturer indirectly in relation to the manufacture of final products - credit allowed. Appeal allowed - decided in favor of appellant. - Excise Appeal Nos.50958 & 50636 of 2014 - A/53619-53620/2017-EX[DB] - Dated:- 29-5-2017 - Shri Anil Choudhary, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Ms. Sukriti Das, Advocate for the appellant Ms. Suchitra Sharma, AR for the Respondent ORDER Per: Anil Choudhary Appellant is engaged in manufacture of Zinc Lead Concentrates falling under Chapter 26 of the First Schedule to the Central Excise Tariff Act, 1985 and is also availing Cenvat credit on various inputs, capital goods and input services in terms of the provisions of the Cenvat Credit Rules, 2004. Appellant is mining ore and concentrating the said ore for smelting metal out of the same. During the beneficiation process, which is an integral part of manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to tailing dam maintenance work for pipeline of tailing dam [in E/50958/2014] and construction services in relation to Secured Land Fills and Jerofix Storage Ponds [in E/50636/2014 ], for disposal of Industrial Waste and Polluted Water, have no nexus with the manufacturing process of the appellant and hence, not entitled to take credit under Rule 2(1) of the Credit Rules. Thus, SCNs were issued by invoking extended period of limitation. 4. Appellant filed detailed reply with respect to each of the notices stating that disposal of hazardous waste is an integral activity connected with manufacturing operations, especially when the plant would be refused permission by the State Pollution Control Board to function at all if Pollution Control measures are not adopted as directed. Further, the maintenance services used for pipelines connecting tailing dam to the captive mine to transport water is essentially in relation to manufacturing activity, thus qualifying as an input service eligible for credit under Rule 2(1) of the Credit Rules. 5. However, the Id. Adjudicating Authority vide separate Orders-in-Original dated 31.10.2013 18.11.2013 passed similarly worded OIOs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services- (A) Service portion in the execution of a works contract and construction services including service listed under clause b o Section 66E of the Finance Act, (hereinafter referred as specified services) in so far as they are used for- (a) Construction or execution of works contract of a building or a civil structure or a part thereof; or (b) Laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services or (Emphasis supplied) 6.4 The expression in or in relation to the manufacture of final product used in the means part of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Tribunal in the said case was dealing with availment of Cenvat Credit on cement as inputs for disposal of the hazardous waste. The aforesaid order was also followed by this Tribunal in the appellant's own cases: Hindustan Zinc Ltd. v. CCE, Jaipur-II, F.O. No.55074-55079/2016 dated 11.11.2016 Hindustan Zinc Ltd. v. CCE, Jaipur-II, F.O. No.54037/2015 dated 21.12.2015 6.7 In the aforesaid cases, reliance was placed by the Tribunal on the decision of the Hon'ble Supreme Court in Indian Farmers Fertilizer Corp. Ltd. V. CCE, 1996 (86) ELT 177 (SC), wherein the issue involved was availment of exemption notification in respect of raw naptha used in the manufacture of ammonia provided such ammonia is used elsewhere in the manufacture of fertilizers. Hon'ble Supreme Court held that use of ammonia in water treatment, steam generation and inert gas generation is a necessary part of manufacturing urea. The relevant portion of the order is as follows: 9. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dang ..... X X X X Extracts X X X X X X X X Extracts X X X X
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