2015 (10) TMI 1822 - AT - Central Excise

Appeal granted for cenvat credit on gardening and housekeeping services, emphasizing social responsibility and business necessity.

The judge allowed the appeal, overturning the denial of cenvat credit on gardening and housekeeping services. Citing a precedent from a case before the ... Denial of CENVAT Credit - Gardening and Housekeeping Services - Held that:- Maintenance of garden and cleanliness of factory is connected to their business activity of production and sale of final products. Learned AR for Revenue submits that the Tribunal in the case of CCE, Trichy vs. Sri Rama Vilas Service Limited - [2011 (4) TMI 520 - CESTAT, CHENNAI] disallowed the cenvat credit on gardening services. - decision of the Hon’ble Karnataka High Court in the case of Commissioner of Central Excise, Bangalore vs. Millipore India Pvt. Limited - [2011 (4) TMI 1122 - KARNATAKA HIGH COURT ]. In that case, the Honble High Court held that concept of social responsibility and statutory obligation to maintain their factory in eco-friendly manner is also relevant and allowed the input service credit on landscaping of factory and garden. - Respectfully following the decision of the Hon’ble Karnataka High Court in the case of Millipore India Pvt. Limited (supra), the order for denial of cenvat credit on gardening and housekeeping services are set-aside - Decided in favour of assessee. Issues: Denial of cenvat credit on gardening and housekeeping services.Analysis:1. The adjudicating authority denied cenvat credit of Rs. 84,245 on input services related to gardening and housekeeping. The appellant argued that maintaining the garden and cleanliness of the factory is essential for their business activity of production and sale of final products.2. The learned Authorized Representative for the revenue referred to a previous case where the Tribunal disallowed cenvat credit on gardening services. However, in response, the appellant cited a decision by the Hon'ble Karnataka High Court in a different case, Commissioner of Central Excise, Bangalore vs. Millipore India Pvt. Limited. The High Court in that case allowed input service credit on landscaping of the factory and garden, emphasizing the concept of social responsibility and statutory obligation to maintain the factory in an eco-friendly manner.3. Considering the precedent set by the Hon'ble Karnataka High Court in the case of Millipore India Pvt. Limited, the judge set aside the order denying cenvat credit on gardening and housekeeping services. The appeal was allowed, granting consequential relief to the appellant.This judgment highlights the importance of considering social responsibility and statutory obligations in determining the eligibility for input service credit related to maintaining factory premises, as established by the decision of the Hon'ble Karnataka High Court.