Court Upholds Cenvat Credit for Landscaping Services

The judge dismissed the Revenue's appeal, affirming the admissibility of cenvat credit on service tax for landscaping services, citing a recent High Court decision. The High Court ruled that such services are integral to a manufacturer's business activities, entitling the respondent to claim credit for service tax paid on landscaping services.

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Issues:
Admissibility of cenvat credit on service tax for landscaping services.

Analysis:
The judgment pertains to the admissibility of cenvat credit on service tax for landscaping services availed by the respondent. The audit revealed that the respondent had claimed cenvat credit amounting to Rs. 3,75,008/- for services between August 2005 to August 2009. Subsequently, proceedings were initiated challenging the admissibility of such credit, leading to the confirmation of demand along with interest and penalty. The Commissioner (Appeals) later set aside the original order, prompting the Revenue to file an appeal against this decision.

Upon deliberation, the judge noted that the issue at hand aligns with a recent judgment by the Hon'ble High Court of Karnataka in the case of Commissioner of Central Excise, Bangalore vs. Millipore India Pvt. Limited. The High Court's decision established that landscaping of factory gardens falls under the umbrella of modernization, renovation, and repair of office premises. Moreover, the High Court emphasized the significance of maintaining factory premises for credit rating, compliance with environmental laws, social responsibility, and statutory obligations. Consequently, the High Court concluded that such services are integral to the business activities of a manufacturer of excisable goods, thereby entitling the assessee to claim credit for service tax paid on these services.

Given the direct applicability of the High Court's ruling to the present case, the judge dismissed the Revenue's appeal, affirming the admissibility of cenvat credit on service tax for landscaping services. The judgment was dictated and pronounced in court, bringing the matter to a close.

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