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of <h1>Court ruling: Pest control qualifies for CENVAT credit, landscaping services do not.</h1> <h3>Tyco Sanmar Versus Commissioner of Central Excise, Trichy</h3> Tyco Sanmar Versus Commissioner of Central Excise, Trichy - [2011] 32 STT 142 (Chennai - CESTAT) Issues:Eligibility of CENVAT credit on service tax paid for Landscaping Services and Pest/Rodent Control Services.Analysis:Landscaping Services:The appellants argued that as per the certificate issued by the Tamil Nadu Pollution Control Board, they are required to plant and maintain trees, making landscaping essential for them. They contended that landscaping is directly or indirectly associated with the manufacturing process of safety valves and should be considered as input services. They cited precedents where garden maintenance services were treated as input services. However, the Departmental Representative disagreed, stating that landscaping is not essential for manufacturing safety valves and cited cases to support this argument. The judge noted that while a good garden may create a better environment, it may not be directly related to the manufacturing process unless consumers are involved. The judge concluded that landscaping services do not qualify as input services as they are not directly related to the manufacture of safety valves.Pest/Rodent Control Services:The appellants argued that Pest/Rodent Control Services were essential for exporting their final products, as foreign markets require such activities. They referenced cases where similar services were considered input services. The judge acknowledged that foreign countries often require such precautionary activities by manufacturers and held that Pest/Rodent Control Services should be treated as input services. Consequently, the appeals were rejected concerning CENVAT credit on landscaping services but allowed regarding credit on Pest/Rodent Control Services.In conclusion, the judgment clarified that while Pest/Rodent Control Services qualify as input services, Landscaping Services do not meet the criteria for CENVAT credit eligibility.
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