Tribunal allows CENVAT credit on pest control, denies site visit fee credit.

The tribunal ruled in favor of the appellant, allowing CENVAT credit on pest control services for maintaining a pest-free environment in a godown storing essential inputs for manufacturing aerated drinks and fruit juice. However, the tribunal upheld the decision to disallow credit for a site visit fee related to a national award assessment, determining it did not qualify as an input service. The appellant's appeal was partially allowed, with credit granted only for pest control services.

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Issues: Disallowance of CENVAT credit on pest control services and site visit fee for national award bill (management consultancy) service.

In the case, the appellant, engaged in the manufacture of aerated drinks and fruit juice, contested the disallowance of CENVAT credit on pest control services for a godown storing sugar, an essential input for their final products. The appellant argued that maintaining a pest-free environment in the godown was crucial due to the human consumption of the final products. The tribunal agreed, ruling that pest control services were indeed input services directly linked to the manufacturing activity, thus eligible for credit. Consequently, the disallowance of credit on pest control services was set aside.

Regarding the site visit fee paid by the appellant for officials of the Confederation of Indian Industry (CII) in relation to the National Award for Food Safety 2014, the appellant claimed it was a form of management consultancy service. However, the tribunal found that the visit was conducted for the purpose of assessing the appellant for an award and not at the appellant's request for consultancy. As a result, the tribunal upheld the authorities' decision to disallow the credit for the site visit fee, stating that it did not qualify as an input service. The impugned order was modified to allow credit only for pest control services, partially allowing the appeal.

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