2013 (5) TMI 679 - AT - Central Excise

Tribunal allows Cenvat credit for service tax on garden maintenance inside factory premises

The Tribunal allowed the appeal, granting Cenvat credit for the service tax paid on garden maintenance inside the factory premises, aligning with the ... Cenvat credit of service tax paid on maintenance of garden inside the factory premises - Held that:- As decided in Commissioner Vs Millipore India Pvt. Ltd. [ 2011 (4) TMI 1122 - KARNATAKA HIGH COURT] credit has been allowed on maintenance of garden - in favour of assessee. Issues: Whether service tax paid on maintenance of garden inside factory premises can be allowed as Cenvat credit under Cenvat Credit Rules, 2004.The judgment addresses the issue of whether the service tax paid by the appellant for maintaining a garden inside the factory premises is eligible for Cenvat credit. The Revenue argued that gardening has no connection with manufacturing activities and thus denied the credit at lower levels. The appellant presented a Consent Order from the Tamilnadu Pollution Control Board, specifying conditions for factory expansion, including planting trees. Although no proof of the order was submitted earlier, the Tribunal accepted the submission due to the small amount involved and the common nature of such regulations by pollution control authorities. The absence of any finding disputing that the garden was within the factory premises further supported the appellant's claim.The appellant's counsel referred to a decision by the Hon'ble Karnataka High Court in the case of Commissioner Vs Millipore India Pvt. Ltd., where credit for garden maintenance was allowed. The Court in that case emphasized that Cenvat credit should be permitted for such services. Relying on this precedent, the Tribunal allowed the appeal, aligning with the decision of the Karnataka High Court. The judgment concludes with the appeal being allowed based on the precedent set by the Karnataka High Court, thus granting Cenvat credit for the service tax paid on garden maintenance inside the factory premises.