Housekeeping services with nexus to manufacture qualify as input services for CENVAT credit under Rule 2(l).

Housekeeping services used to keep factory premises, shop-floor and machinery clean, and to maintain the environment necessary for manufacture, qualify as input services under Rule 2(l) of the CENVAT Credit Rules, 2004 when they have a nexus with manufacturing activity. The Tribunal noted that the same issue had already been decided in the appellant's favour for a later period on the strength of earlier Tribunal and High Court rulings. Accordingly, credit on such housekeeping services was admissible and the denial of CENVAT credit was not sustainable.

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Issues: Whether CENVAT credit was admissible on housekeeping services used in the factory for keeping the premises, shop-floor and machinery clean and for maintaining the environment necessary for manufacture, with the services falling for consideration under Rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis: The dispute concerned credit on housekeeping services availed for the factory premises during the relevant period. The Tribunal noted that the issue had already been settled in the appellant's own case for a subsequent period, where credit on similar services had been allowed following earlier Tribunal and High Court decisions. In that view, the housekeeping services were treated as services connected with the manufacturing activity and not as excluded services.

Conclusion: CENVAT credit on the housekeeping services was admissible and the denial of credit was not sustainable.

Ratio Decidendi: Housekeeping services used for maintaining factory cleanliness and the manufacturing environment qualify as input services when they have a nexus with manufacture under Rule 2(l) of the CENVAT Credit Rules, 2004.

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