Appellant wins Cenvat Credit for garden upkeep, interior decorator, and renting services The appellant successfully argued for the eligibility of Cenvat Credit on garden upkeep services, interior decorator services, and renting of immovable ...
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Appellant wins Cenvat Credit for garden upkeep, interior decorator, and renting services
The appellant successfully argued for the eligibility of Cenvat Credit on garden upkeep services, interior decorator services, and renting of immovable property services for branch offices. The denial of credit was deemed unjustified as maintaining green areas was a statutory requirement, interior decorator services had a nexus with manufacturing activities, and renting branch offices was necessary for sales operations. The impugned orders were modified to allow the credit, and the appeals were allowed with consequential reliefs.
Issues involved: Denial of Cenvat Credit on garden upkeep services, interior decorator services, and renting of immovable property services.
Analysis: 1. Garden upkeep services: The appellant, a manufacturer, was denied credit for garden upkeep services. The appellant argued that maintaining green areas was a statutory requirement under pollution control norms. Citing a High Court decision, it was held that the denial of credit was unjustified, and the credit was deemed eligible due to the manufacturing activity's nature.
2. Interior decorator services: The appellant claimed credit for interior decorator services used for modernization and repairs. The authorities contended that these services lacked a nexus with manufacturing activities. However, evidence showed minor civil work related to workstations overseeing manufacturing operations, making the credit eligible. The denial of credit was set aside.
3. Renting of immovable property services: The credit for renting branch offices was disallowed, arguing the lack of nexus with manufacturing activities. The appellant justified the branch offices' necessity for sales order collection, supply coordination, and market research. Referring to a Tribunal decision, it was concluded that the credit availed on renting branch offices was eligible. Consequently, the disallowance of credit was deemed improper and set aside.
In conclusion, the impugned orders were modified to allow credit for garden services, interior decorator services, and renting of immovable property services for branch offices. The demand confirmation on these services was set aside, and the appeals were allowed accordingly with any consequential reliefs.
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