CENVAT credit utilization

[RAHUL KUMAR]

Wether a assessee can take and utilize credit on service tax paid on gardening in their premises.

AI Summary

Can CENVAT Credit Be Used for Gardening Services? Rule 2(l) and 3 of CCR 2004 Explored. A discussion on a forum addressed whether an assessee can utilize CENVAT credit for service tax paid on gardening services at their premises. Opinions varied: one participant noted that rules 2(l) and 3 of CCR 2004 do not allow such credit as gardening is unrelated to manufacturing. Another mentioned that gardening services were not allowed for credit in BSNL, except when necessary for business purposes. It was also argued that if gardening is mandatory under environmental law, input tax credit (ITC) should be available. A reference was made to a CESTAT Mumbai case supporting this view.