2016 (1) TMI 818 - AT - Central Excise

Tribunal grants CENVAT credit for green belt, catering service; remits xerox copy issue for further examination

M/s. Dalmia Cement (Bharat) Limited Versus CCE, Trichy

The Tribunal allowed the appellant's challenge on the disallowance of CENVAT credit for maintenance of green belt to reduce pollution, citing evidence ... Erroneous availment of CENVAT credit in respect of maintenance of green belt to reduce pollution - Held that:- When appellant is manufacturer of cement and control of pollution in factory area is an indispensable necessity. Therefore, CENVAT credit on that count is allowed. Outdoor catering service - disallowance of CENVAT credit against the appellant - Held that:- There is no finding by the Commissioner (Appeals) in the appeal that service of caterer was not utilized for the factory with a view to comply to the provisions of Factories Act. In such an event, when it did not rule out the utility of service to factory workers, disallowance is uncalled for. Issues:1. Erroneous availment of CENVAT credit for maintenance of green belt to reduce pollution.2. Disallowance of CENVAT credit for outdoor catering service.3. Lack of proof for xerox copies of invoices related to CENVAT credit claim.Analysis:1. The appellant challenged the disallowance of CENVAT credit for maintenance of green belt to reduce pollution. The appellant argued that there were sufficient evidences indicating that the expenditure incurred had a service tax element and was related to pollution control, which is essential for a cement factory. The appellant relied on previous Tribunal decisions to support the claim. The Tribunal found the argument reasonable and allowed the CENVAT credit on these grounds.2. Regarding the disallowance of CENVAT credit for outdoor catering service, the Commissioner (Appeals) had initially directed an examination of compliance with the Factories Act. Despite a re-examination, the adjudicating authority confirmed the disallowance. The Tribunal noted that there was no finding that the catering service was not utilized for the factory workers to comply with the Factories Act. As the service was indeed used for the benefit of the factory workers, the denial of CENVAT credit was deemed unreasonable and uncalled for. Consequently, the disallowance was set aside.3. The issue of xerox copies of invoices related to the CENVAT credit claim was also addressed. The appeals failed due to a lack of proof of identification and relevant details under the law. However, the appellant presented proof of four invoices during the proceedings. The Tribunal decided to remit the appeals to the adjudicating authority for a thorough examination of the eligibility of CENVAT credit based on the newly provided evidence. The appellant was instructed to cooperate with the authority and file an application within a month for a hearing specifically on this issue to expedite the resolution of the matter and conclude the litigation.