Tribunal waives pre-deposit for Cenvat credit on house-keeping services, aligning tax laws with industrial needs.

The tribunal granted relief to the appellant by waiving the pre-deposit condition of demand, interest, and penalty related to Cenvat credit availed on house-keeping services. The decision recognized that expenses on house-keeping are incidental to manufacturing activities under the Factory Act, qualifying as input services. This case highlights the importance of aligning legal provisions with practical industrial operations for a fair application of tax laws.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of the demand, interest and penalty on the ground that house-keeping and cleanliness services used in the factory qualified as input services.

Analysis: The obligation to maintain cleanliness in the factory under Section 11 of the Factories Act, 1948 was treated as a statutory duty of the factory owner. On that basis, the expenses incurred on house-keeping and cleanliness of the factory were regarded as incidental to manufacture, sufficient to show a prima facie entitlement to Cenvat credit for the purpose of interim relief.

Conclusion: The appellant was held entitled to waiver of the pre-deposit condition, and the stay application was allowed.

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