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TMI Blog2023 (6) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant s factory therefore, it can be conveniently draw the conclusion that the effluent treatment activity is a vital part of overall manufacturing of the final product if this be so then the input services used for effluent treatment are admissible input service. This issue is no longer res-integra as in the various judgments the services related to effluent treatment has been held as admissible input service and cenvat credit was allowed - In case of COMMISSIONER, CENTRAL EXCISE SERVICE TAX, SURAT-II VERSUS MI/S KANORIA CHEMICALS INDUSTRES LTD. [ 2015 (7) TMI 970 - CESTAT AHMEDABAD] this tribunal dealt with the similar fact held that treatment of effluent from a factory has to be considered as essential and integral part of the process of manufacture. In case of M/S. WIPRO ENTERPRISES (P) LTD., (FORMERLY M/S. WIPRO LTD. ) VERSUS THE COMMISSIONER OF G.S.T. CENTRAL EXCISE, [ 2018 (12) TMI 1167 - CESTAT CHENNAI] this tribunal s Chennai Bench on the issue of credit on water treatment held that demand raised on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015 is set aside Thus, it can be seen that the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary to carry out the production activity as per the consent given by the Pollution Control Board, if the industrial waste arising during the course of manufacture is not treated in the effluent treatment plant and the treated water is not discharged, the permission can be cancelled and without permission the appellant cannot run the production. It is therefore, the effluent treatment activity is necessary to carry out the uninterrupted production activity of the appellant therefore, the activity is in relation to manufacture of final product. Accordingly, the cenvat credit is admissible. He placed reliance on the following judgments:- M/S KANORIA CHEMICALS INDUSTRES LTD.2015 (7) TMI 970 AHMEDABAD. ADROIT PHARMACHEM PRIVATE LIMITED 2022 (1) TMI 59 CESTAT AHMEDABAD M/S. WIPRO ENTERPRISES (P) LTD., 2018 (12) TMI 1167 CESTAT CHENNAI ANAR CHEMICALS PVT. LTD. 2011 (24) S.T.R. 32 (TRI. - AHMD.) CHEMPLAST SANMAR LTD.2004 (176) E.L.T. 412 (TRI. - CHENNAI) MONARCH CATALYST PVT LTD 2014 (300) ELT 89 (TRI-MUM) FERROMATIK MILACRON INDIA LTD 2011 (21) STR 8 (GUJ) INDIAN FARMERS FERTLIZERS CO-OPERATIVE LTD 1996 (86) ELT 177 (SC) S.C. ENVIO (AGRO) INDIA P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t shall not be liable to run their factory. In this undisputed position, the effluent treatment activity is necessary to carry out the uninterrupted production of the final product in the appellant s factory therefore, it can be conveniently draw the conclusion that the effluent treatment activity is a vital part of overall manufacturing of the final product if this be so then the input services used for effluent treatment are admissible input service. This issue is no longer res-integra as in the various judgments the services related to effluent treatment has been held as admissible input service and cenvat credit was allowed. Some of the judgments are cited below:- In case of M/S KANORIA CHEMICALS INDUSTRES LTD (supra) this tribunal dealt with the similar fact and passed the following order:- 4. Heard both the sides and perused the case records. The issue involved in the present appeal is whether certain pollution control services availed by the appellant are eligible to CENVAT Credit under CENVAT Credit Rules 2004 or not. Revenue filed this appeal on the ground that the activities in relation to business have been deleted from the definition of input services during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame is utilized by the appellant as per the guidelines or norms of PCB according to which establishment of Effluent Treatment Plant in the factory is a statutory requirement for the treatment of polluted water. With regard to Garden Maintenance Services too, I find that the same is required as per the guidelines of the PCB for the purpose of a better work atmosphere. Further, I find that this issue stands decided by a plethora of decisions including the decision of the Hon ble Madras High Court in the case of Wipro Ltd. Vs. Commissioner of C.Ex., Pondicherry 2018 (10) G.S.T.L. 172 (Mad.) wherein the jurisdictional High Court has held that Housekeeping and Landscaping Services were entitled to CENVAT Credit of service tax paid on them. In the light of the discussions made hereinabove, I am of the view that the appellant has rightly availed Credit on Water Treatment Service and Garden Maintenance Service for which reason I set aside the demand raised on this count. 10. To sum up: (i) Demand on Rent-a-Cab Service for the period from April 2008 to March 2009 is set aside; (ii) Demand on Rent-a-Cab Service for the period from December 2011 to October 2012 is upheld with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pees Three Lakhs, Fifty Thousands, Two Hundreds and Eighty Six Only) and of Rs. 56,374/- (Rupees Fifty Six Thousands, Three Hundreds and Seventy Four Only), it is not clear from the impugned order of the Commissioner (Appeals) that as to whether the same is denied on the ground of procedural lapses or on the ground that the duty does not stand deposited by the service provider with the department. It is also seen that the appellate authority has observed that the issue of non-payment of Service Tax by service provider was raised in the Audit. Whether this was the audit of present appellant or of the service provider is not clear. As such, I would like the Commissioner (Appeals) to decide the said issues afresh after taking note of various decisions of the Tribunal relied upon by the appellant before me. 4. In view of the above, the demand of Rs. 1,01,797/- (Rupees One Lakh, One Thousand, Seven Hundreds and Ninety Seven Only) along with interest and penalty of identical amount is set aside. In respect of other issues, the matter is remanded to Commissioner (Appeals), for fresh consideration. 5. The appeal is disposed off in above manner. The similar issue related to ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of goods . This was a reiteration of the view expressed in M/s. J.K. Cotton Spinning Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur and Another - 1965 (1) SCR 900. It was there held, The expression in the manufacture takes in within its compass, all processes which are directly related to the actual production . In Collector of Central Excise, New Delhi v. M/s. Ballarpur Industries Ltd. - (1984) 4 SCC 566, the respondent manufactured paper and paperboard, in the processes relating to which sodium sulphate is used in the chemical recovery cycle of sodium sulphate which forms an essential constituent of sulphate cooking liquor used in the digestion operation . The Exemption Notification concerned provided exemption to goods which had used as raw material or component parts any goods (inputs) falling under Item 68 of the First Schedule to the Act from so much of the excise duty leviable thereon as was equivalent to the excise duty paid on the inputs. The Court quoted what had been said in Dy. CST v. Thomas Stephen Co. Ltd., namely, Consumption must be in the manufacture as raw material or of other components which go into the making of the end-product ......... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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