Tribunal grants CENVAT credit on excise duty and service tax, overturning earlier decision.

The tribunal allowed the appeal in a case concerning the denial of CENVAT credit on central excise duty for TMT bars and service tax for gardening and maintenance services. The tribunal found the appellant eligible for the credit based on precedents and set aside the order-in-original, declaring it unsustainable. The impugned order was overturned, and the appellant succeeded in obtaining the CENVAT credit.

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Issues:
Denial of CENVAT credit on central excise duty paid on TMT bars and service tax paid on gardening and maintenance services and painting of the plant.

Analysis:
The appeal was against Order-in-Original denying CENVAT credit on central excise duty and service tax. The adjudicating authority held the appellant ineligible for credit as activities were not related to manufacturing. The appellant argued TMT bars were used for modifications in mills, not disputed by the authority. Regarding gardening and maintenance services, the Pollution Control Board mandated a green belt around the cement plant. The appellant complied by engaging professionals for gardening and maintenance, incurring service tax. The tribunal found the appellant eligible for CENVAT credit based on precedents like India Cement Ltd., CCE Bangalore Vs Millipore India Pvt Ltd., and U.G. Sugars & Industries Ltd.

Decision:
The tribunal, noting the settled nature of the issue, set aside the impugned order, declaring it unsustainable. The appeal was allowed, and the impugned order was overturned.

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