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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 ...
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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 Hon'ble Karnataka High Court, the decision emphasized the importance of social responsibility and statutory obligations in maintaining factory premises. The appellant successfully argued that maintaining the garden and cleanliness of the factory is integral to their business activities. Consequently, the denial of cenvat credit was set aside, granting relief to the appellant.
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.
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