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of <h1>Manufacturer allowed CENVAT credit for hazardous waste disposal service tax.</h1> <h3>Dow Agro Sciences India P. Ltd. Versus Commissioner of Central Tax, Pune</h3> The appellant, a manufacturer required to dispose of hazardous waste, was deemed eligible to claim CENVAT Credit for service tax paid by the service ... CENVAT Credit - input services or not - Services of waste disposal management - whether the appellant is eligible to avail CENVAT Credit of service tax paid by service provider who rendered the services of waste disposal management? - Held that:- Tribunal in the case of CCE & ST v. Kanoria Chemicals and Industries Ltd. [2015 (7) TMI 970 - CESTAT AHMEDABAD] has held that CENVAT credit on effluent treatment plant has to be considered as eligible CENVAT credit as Pollution Control Boards of the respective states have put in place, a mechanism that before any permission is granted the compliance of waste management is put in place. The appellant is entitled for availment of CENVAT credit on service tax paid on hazardous waste management service - appeal allowed - decided in favor of appellant. Issues:Whether the appellant is eligible to avail CENVAT Credit of service tax paid by the service provider for waste disposal management.Analysis:The appeal addressed the issue of whether the appellant, a manufacturer required to dispose of hazardous waste in compliance with environmental regulations, is entitled to claim CENVAT Credit for service tax paid by the service provider for waste disposal management. The appellant's manufacturing process necessitates the disposal of hazardous waste in accordance with the Environment Act and the directives of the Maharashtra State Pollution Board. The Government of India has mandated waste disposal as a statutory requirement under the Hazardous Waste Rules, 2008. The services provided to the appellant are essential for compliance with these rules, and the manufacturing activity is dependent on such compliance. The presiding member opined that if an external agency offers mandated services, the appellant should not be denied CENVAT Credit as these services are directly related to the manufacturing activity.The judgment referenced a significant decision by the Hon'ble Apex Court in the case of Indian Farmers Fertilizers Coop Ltd. v. Commissioner of Central Excise, emphasizing the importance of effluent treatment in the manufacturing process. The Court highlighted that effluent treatment is an integral part of the manufacturing process, crucial for environmental protection and pollution control. The judgment also cited precedents from the Tribunal, such as CCE & ST v. Kanoria Chemicals and Industries Ltd. and CCE v. L'Oreal India Pvt. Ltd., which supported the eligibility of CENVAT credit for effluent treatment services. Relying on these legal precedents and the binding decisions of the Hon'ble Supreme Court and the Tribunal, the presiding member concluded that the appellant is entitled to avail CENVAT credit on service tax paid for hazardous waste management services. Consequently, the appeal of the appellant was allowed, affirming their right to claim the CENVAT credit.This detailed analysis of the judgment underscores the importance of environmental compliance in manufacturing activities and the eligibility of manufacturers to claim CENVAT credit for services related to waste disposal management, as mandated by statutory regulations and legal precedents.
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