CENVAT credit on housekeeping services remanded for verification of business coverage under shops and establishments law

CENVAT credit on housekeeping and cleaning services was examined in the context of services used at branch offices and credit distributed from head office. The Tribunal noted that an earlier order in the assessee's own case had already remanded the matter to verify whether the assessee fell within the Tamil Nadu Shops and Establishments Act, 1947, but the lower authorities had not examined that question. As the eligibility of the input services depended on that verification, the dispute was sent back to the original authority for fresh examination after hearing both sides, and the disallowance was not finally sustained on merits.

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Issues: Whether the disallowance of CENVAT credit on housekeeping and cleaning services required interference, and whether the matter should be remanded for verification of the assessee's coverage under the Tamil Nadu Shops and Establishments Act, 1947.

Analysis: The dispute turned on whether the impugned services, though availed at branch offices and credit distributed from the head office, were eligible as input services in relation to the assessee's business. The Tribunal noted that in the assessee's own case an earlier order had already remanded the matter to examine whether the assessee fell within the purview of the Tamil Nadu Shops and Establishments Act, 1947, and the lower authorities had not examined that question. In these circumstances, the proper course was to send the matter back for verification and fresh decision after hearing both sides.

Conclusion: The disallowance was not finally affirmed on merits, and the matter was remanded to the original authority for fresh examination.

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