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

The Tribunal allowed the appellant's challenge on the disallowance of CENVAT credit for maintenance of green belt to reduce pollution, citing evidence supporting the claim. Disallowance of CENVAT credit for outdoor catering service was overturned as it was used for factory workers' benefit. The issue of xerox copies of invoices lacked proof initially, but the appellant later presented evidence, leading the Tribunal to remit the matter for further examination by the adjudicating authority to determine CENVAT credit eligibility promptly.

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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.

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