CENVAT credit utilization

[RAHUL KUMAR]

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

[Himansu Sekhar]

Contentious issue. Decisions neither side. Moreover it appears rule 2(l) and 3 of ccr 2004 do not entitle the credit. No relation with manufacturing and not mandatory to maintain a garden

[DR.MARIAPPAN GOVINDARAJAN]

While I was working in BSNL, the gardening services are not allowed to utilize CENVAT credit. But in some cases the same is allowed as it is required to attract the customers for their business purposes. The decision in this regard by the High Court has not been there to the best of my knowledge.

[SHIVKUMAR SHARMA]

Maintain of Garden in the Chemical Industry is obligatory for an assessee under the Environmental law.Hence as per my view ITC is available.

[YAGAY andSUN]

2015 (2) TMI 659 - CESTAT MUMBAI M/s. Larsen & Toubro Ltd. Versus Commissioner of Central Excise, Belapur

[Ganeshan Kalyani]

So if it is mandatory to comply under a law then the credit would be allowed. Thanks.

AI Summary

CENVAT credit on gardening services hinges on nexus to business activity and whether maintenance is legally mandatory. Entitlement to CENVAT credit on gardening services turns on nexus to taxable manufacturing or business activity and on whether garden maintenance is legally obligatory; routine or voluntary gardening lacks the required connection and is generally ineligible, whereas services undertaken to comply with statutory obligations may be claimable, with conflicting lower level authorities and no clear higher court resolution.