By Puloma Dalal, Jayesh Gogri, Mandar Telang, Chartered Accountants
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CENVAT credit on garden maintenance services, manpower services for garden maintenance was statutory obligation and therefore, is eligible CENVAT credit.
Construction service for compound wall of factory is to demarcate the factory, for completion of the factory and to save goods from pilferage and clandestine removal and therefore, is in relation to manufacture of excisable goods. Therefore, these services are eligible for availment of CENVAT Credit.
Facts:
The appellants took CENVAT credit on pest control services, manpower supply services required for maintaining a garden in factory premises and construction services utilised for making the compound wall of the factory. The appellants were compelled to develop 33% of the factory area to mitigate the effects of emissions around the plant vide permission by Government of India, Ministry of Environment and Forest. Further, to maintain garden, the plant had availed services of maintenance, garden development and manpower supply services for garden maintenance. The appellants relied on the decision of CCE, Bhavnagar vs. Nirma Ltd. 2010 (20) STR 346 (Tri.-Ahmd.) and with respect to construction services for compound wall of the factory, the appellants relied on the decision of CCE, Pune – II vs. Raymond Zambaiti Pvt. Ltd. 2010 (18) STR 734 (Tri.-Mum.).
Held:
Relying on the decisions cited by the appellants, the Tribunal held that services in relation to garden maintenance were to fulfil a statutory obligation and therefore, the same were eligible for CENVAT credit. Further, compound wall was essential to demarcate the factory premises and to save manufactured goods from pilferage and clandestine removal and therefore, the same was for completion of factory and an activity in relation to manufacture of excisable goods. Accordingly, CENVAT credit in respect of all disputed services was allowed.
