Appellate Tribunal allows credit for Security and Pest Control services in manufacturing.

The Appellate Tribunal CESTAT, Bangalore upheld the Orders-in-Appeal allowing the appellants to avail credit on service tax paid for Security at the Depot and Pest Busters services. The Tribunal emphasized the importance of these services in preventing contamination and theft in manufacturing activities, aligning with past rulings. The Revenue's appeal for a stay was rejected, with the Tribunal finding no issue with the Commissioner (Appeals)' decision. The judgment underscored the applicability of Cenvat Credit Rules to services integral to manufacturing processes, emphasizing the need to prevent contamination and theft to justify credit availment.

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Issues: Availability of credit on service tax paid by the appellants on the services of Security at the Depot and Pest Busters under the definition of Input Services in Cenvat Credit Rules.

In the judgment by the Appellate Tribunal CESTAT, Bangalore, the Revenue appealed Orders-in-Appeal regarding the availability of credit on service tax paid by the appellants for Security at the Depot and Pest Busters services. The Commissioner (Appeals) found both activities related to manufacturing, with Pest Busters preventing contamination of food products and Security Services preventing theft of goods. The Revenue sought a stay of the operation. The Tribunal noted the Commissioner (Appeals) followed a previous ruling in a similar case and found no issue with the impugned orders, rejecting the stay applications. The matters were scheduled for a hearing before a Single Member bench on 8th October, 2008. The judgment emphasized the importance of preventing contamination and theft in manufacturing activities to justify the availment of Cenvat credit on the mentioned services. The legal analysis highlighted the relevance of past rulings and citations in supporting the decision to reject the stay applications. The judgment showcased the application of legal principles and precedents in determining the availability of credit under the Cenvat Credit Rules for specific services utilized in manufacturing processes.

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