Cenvat credit on factory housekeeping services allowed where the services supported manufacture and statutory cleanliness obligations.

House Keeping Services used in a factory were treated as input services with a sufficient nexus to manufacture because they maintained cleanliness, supported healthy working conditions, and helped satisfy the statutory obligation to keep the factory clean under the Factories Act, 1948. On that basis, Cenvat credit under the Cenvat Credit Rules, 2004 was held admissible and the disallowance was found unsustainable.

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Issues: Whether cenvat credit on House Keeping Services used in the factory was admissible under the Cenvat Credit Rules, 2004.

Analysis: House Keeping Services were held to be essential for maintaining cleanliness in the factory, ensuring healthy working conditions, and supporting production. The service was treated as connected with manufacturing activity and also linked to compliance with the statutory obligation to keep the factory clean under the Factories Act, 1948. On that basis, the Tribunal followed its consistent earlier view that such services qualify for credit as they have a sufficient nexus with manufacture.

Conclusion: The credit was admissible and the disallowance was unsustainable.

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