Appellant wins appeal for Cenvat credit on Canteen & Gardening Services under Cenvat Credit Rules

The Tribunal allowed the appellant's appeal, permitting Cenvat credit on both Canteen Services and Gardening Services. The appellant successfully argued that Cenvat credit on Canteen Services was admissible under the Cenvat Credit Rules, supported by legal precedents. Additionally, the Tribunal recognized Gardening Services as essential for pollution control in the manufacturing process, aligning with environmental standards. Consequently, the Tribunal set aside the previous orders, granting the appellant relief in accordance with the law.

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Issues:
- Admissibility of Cenvat credit on Canteen Services
- Admissibility of Cenvat credit on Gardening Services

Admissibility of Cenvat credit on Canteen Services:
The appellant, a manufacturer of Agro Products, availed Cenvat credit on Service Tax paid on Canteen Services. The audit party observed that the appellant had wrongly availed Cenvat credit on Canteen Services, leading to demands and penalties. The adjudicating authority confirmed the demands, stating that the cost of food in the factory canteen did not form part of the assessable value of goods, thus not qualifying as an input service. The appellant argued that Cenvat credit on Canteen Services is admissible as per Cenvat Credit Rules, supported by the High Court and CESTAT judgments. They provided evidence of statutory compliance and employee strength but were faulted for not submitting specific documents. The Tribunal, citing the Ultratech Cement Ltd. case, allowed Cenvat credit on Canteen Services, noting the appellant's partial recovery of food costs from employees.

Admissibility of Cenvat credit on Gardening Services:
Regarding Gardening Services, the appellant contended that such services are essential for pollution control in their Agro Products manufacturing process. They argued that maintaining gardens and greenery aligns with environmental standards, making Gardening Services integral to their manufacturing activities. Citing a Supreme Court decision on pollution control equipment, the appellant asserted that Gardening Services qualify as input services. The Tribunal agreed, recognizing the pollution control aspect and the necessity of such services in relation to manufacturing Agro Chemical products. The Tribunal allowed Cenvat credit on Gardening Services based on the pollution control rationale and the Supreme Court precedent.

In conclusion, the Tribunal set aside the impugned orders, allowing both appeals filed by the appellant and granting them consequential relief as per the law.

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