Input service credit for factory gardening and landscaping upheld where services supported pollution-control compliance and premises maintenance.

Gardening and landscaping services used within factory premises were treated as input services eligible for Cenvat credit because the activity was linked to pollution-control compliance and plantation obligations inside the unit. The Tribunal noted that earlier precedent had already held landscaping around the factory to fall within input service, and that a mere appeal against that precedent did not justify ignoring it in the absence of any stay. Credit on the impugned services was therefore admissible, and the Revenue's challenge failed.

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Issues: Whether service tax paid on gardening and landscaping related services used within the factory premises qualifies as input service for Cenvat credit.

Analysis: The factory was subject to pollution control conditions requiring effluent to be used for gardening and plantation within the premises. The Commissioner (Appeals) had treated garden maintenance as a mandatory activity linked to statutory compliance, and the Tribunal noted that earlier decisions had already held landscaping surrounding the factory to be covered by input service. The Revenue did not effectively dispute the applicability of that precedent, and mere filing of an appeal against it did not justify non-following of the existing decision in the absence of any stay.

Conclusion: The credit on the impugned gardening and landscaping services was admissible, and the Revenue's challenge failed.

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