2014 (7) TMI 185

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....ity to the workers in the factory, manpower supply service for maintenance of lawns and green belt around the factory and for maintaining cycle stand for the workers. The total Cenvat credit availed on these services was Rs. 5,52,594/-. The department being of the view that these services have no nexus with manufacture and are not eligible for Cenvat credit, issued a show cause notice for recovery of the Cenvat credit alongwith interest and imposition of penalty. The show cause notice was adjudicated by the Assistant Commissioner vide order-in-original dated 26/6/10 by which he confirmed the above-mentioned Cenvat credit demand alongwith interest and imposed penalty of equal amount on the appellant. On appeal being filed to Commissioner (Ap....

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....on control board has put a condition that 33% of the total area of the factory premises shall be covered by the tree plantation, that in view of this, unless the green belt is maintained, manufacturing operations would not allowed and hence the service availed for maintenance of lawns and green belt has to be treated as service used in or in relation to the manufacture of final product, that the Tribunal in the case of CCE, Bhavnagar vs. Nirma Ltd. reported in 2010 (20) S.T.R. 346 (Tri. - Ahmd.) and in the case of JBM Auto System Pvt. Ltd. vs. CCE, Chennai reported in 2012 (27) S.T.R. 170 (Tri. - Chennai) has held that the services used for maintaining lawn and green belt are eligible for Cenvat credit, that as regards the eligibility for C....

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....ch Cement Ltd. reported in 2010 (20) S.T.R. 577 (Bom.), and same view has been taken by the Hon'ble Gujarat High Court in the case of CCE, Ahmedabad - I vs. Ferromatik Milacron India Ltd. reported in 2011 (21) S.T.R. 8 (Guj.) and Hon'ble Karnataka High Court in the case of CCE, Bangalore - I vs. Bell Ceramics Ltd. reported in 2012 (25) S.T.R. 428 (Kar.). Therefore, the denial of Cenvat credit in respect of outdoor catering service is not sustainable. 7. As regards, the service of manpower supply for maintaining green belt and lawn, the same has been availed to comply with the directions of Rajasthan State Pollution Control Board under their letter dated 8th January 2008 under which while permitting the discharge of Industrial/Domestic ef....