2014 (4) TMI 839

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....whether during this period, the appellant were eligible for Cenvat credit of service tax paid on housekeeping and cleaning service availed for cleaning of the factory shed, legal services and event management service availed for organising functions for honouring the employees for their outstanding work. The Cenvat credit availed in respect of these services is Rs. 3,29,193/-. The point of dispute in respect of the second period of dispute i.e. from July 2010 to June 2011 is as to whether the appellant during this period were eligible for Cenvat credit in respect of the service of housekeeping and cleaning for factory shed and event management availed. The event management service, has been availed up to March 2011. During this period also ....

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....ticular the floor of every work room shall be cleaned at least once in every week, that in view of these provisions of Factories Act, keeping the factory shed neat and clean is statutory requirement and if the assessee fails to comply with these provisions, he will be liable for penalty under this Act, that in view of this, the service of housekeeping and cleaning has to be treated as service used in or in relation to the manufacture of final product as the same are direct nexus with the manufacture, that the service of event management had been availed for recognising the outstanding performance of some employees by honouring them in a function which is necessary for increasing the productivity and hence the same has to be treated as activ....

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.... I have carefully considered the submissions from both the sides and perused the record. 6. Prima facie, I find that so far as the service of housekeeping and cleaning availed in respect of the factory shed is concerned, keeping the factory neat and clean is a statutory requirement in terms of Section 11 of Factories Act, 1948 and, hence, this service has to be treated as service having direct nexus with the manufacture of the final product, as without compliance with the provisions of the Factory Act, no manufacturer can engage in the manufacturing activity. Therefore, the impugned order disallowing the Cenvat credit in respect of this service is not correct. 7. As regards the service of event management availed for organising functi....