cenvat credit on services used for disposal of waste from effluent treatment plant

[Kadayam Ganapathy Subramanian]

Dear sirs,

Whether cenvat credit on services used for disposal of manufacturing waste from effluent treatment plant and for maintenance of such plant set up in a factory is allowed prior to 1.04.2011 and after 01.04.2011 with support of relevant case laws reference if any.

Kindly give your opinion at the earliest.

Regards,

K.G Subramanian

mail ID: subramaniankg@microlabs.in

AI Summary

Cenvat credit on effluent treatment services valid where integral to manufacturing; nexus with output determines eligibility.
CENVAT credit on services for effluent treatment and ETP maintenance is admissible where those services are integral to the manufacturing process and have a direct nexus with the taxable output; case citations permitting credit for ETP inputs support allowing related input services. Compliance with the direct-nexus requirement and procedural rules (including Rule 6) is necessary, and outsourced O&M contracts for on-site ETPs may be creditable if they are connected to manufacturing.