Cenvat credit on maintenance and safety inputs allowed where goods were used for corrosion control, lubrication and fire protection in warehousing operations.

Cenvat credit was allowed on inputs used in storage and warehousing operations where their nexus with output services was established. Industrial paints and thinners were treated as eligible because they were used for corrosion control and protection of steel structures integral to the service setup. Grease was accepted as an industrial lubricant for marine loading arms, and AFFF concentrate was treated as a fire-prevention input required for safety compliance in handling inflammable substances. Rheobuild 821, angles and panels were also allowed to the extent used in construction and foundation work connected with storage tanks and related infrastructure. The Revenue's challenge to credit on these accepted items failed.

---

---

Issues: Whether Cenvat credit was admissible on industrial paints and thinners, grease, AFFF concentrate, Rheobuild 821, angles and panels used in relation to storage and warehousing activities.

Analysis: The disputed items were examined with reference to their use in the assessee's operations. Industrial paints and thinners were found to be used for corrosion control and protection of steel structures integral to the provision of output services. Grease was treated as an industrial lubricant used for marine loading arms forming part of the operating setup. AFFF concentrate was accepted as a fire-prevention input used in compliance with safety regulations for inflammable substances. Rheobuild 821, angles and panels were also accepted to the extent they were used in construction and foundation work connected with storage tanks and related infrastructure. Credit on safety work vest, coil and barbed tapes was not pursued.

Conclusion: Cenvat credit was held admissible on the above accepted inputs to the extent found eligible, and the Revenue's challenge to the allowance of credit failed.

---