Appeals Granted: Penalty Set Aside for Shri Tarun Santra, CENVAT Credit Allowed for Garden Maintenance.

The Tribunal allowed the appeals by KEC International Ltd. and Shri Tarun Santra, setting aside the penalty imposed on Shri Tarun Santra and granting CENVAT credit for garden maintenance and housekeeping within the factory premises to KEC International Ltd. The decision was based on legal requirements and precedents cited during the proceedings, including the necessity of maintaining good housekeeping as a condition to operate the factory.

---

---

Issues involved:
1. Denial of Cenvat Credit by KEC International Ltd.
2. Imposition of penalty on Shri Tarun Santra.
3. Liability of CENVAT credit on Garden maintenance and housekeeping within the factory premises.

Analysis:

Denial of Cenvat Credit by KEC International Ltd.:
The appeal was filed by KEC International Ltd. against the denial of Cenvat Credit. The counsel for the appellant argued that the issue was covered by the decision of the Madras High Court in the case of M/s Rane TRW Steering Systems Ltd. The counsel also referenced a Tribunal decision in the case of Nhava Sheva Intl. Container Terminal (P.) Ltd. The appellant had obtained permission from the Pollution Control Department contingent upon maintaining good housekeeping in the factory. The Tribunal found that the issue of admissibility of CENVAT Credit for garden maintenance was covered by the decision in the Nhava Sheva Intl. Container Terminal (P.) Ltd. case. The impugned order was set aside on this ground, and the appeal was allowed.

Imposition of Penalty on Shri Tarun Santra:
Shri Tarun Santra appealed against the imposition of a penalty. The Authorized Representative for the Revenue relied on the impugned order. However, the Tribunal, after careful consideration, set aside the penalty, and the appeal was allowed.

Liability of CENVAT credit on Garden Maintenance and Housekeeping:
Regarding the admissibility of CENVAT credit on housekeeping, it was noted that the appellant's consent from the Pollution Control Committee was subject to the condition of maintaining good housekeeping in the factory premises. The Tribunal concluded that maintaining good housekeeping was a requirement to operate the factory, and therefore, the credit on this count could not be denied. Consequently, the appeal on this ground was allowed.

In conclusion, the Tribunal allowed the appeals, set aside the penalty, and held that the CENVAT credit for garden maintenance and housekeeping within the factory premises was admissible based on the legal requirements and precedents cited during the proceedings.

---