2015 (9) TMI 944

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.... the show-cause notice it is alleged that the appellant have wrongly availed CENVAT Credit of Service Tax amounting to Rs. 1,80,20,547/- on the input services namely, Rent a cab service, Outdoor catering service, services by Air Travel agency, services by CHA in respect of exports, cleaning and Repair/maintenance service of Guest House, Gymnasium and sports club/sports ground etc. The assessee was further required to show cause as to why the proposed CENVAT Credit not be disallowed and recovered from it, and further as to why not interest be recovered and further why not penalty be imposed under Section 11AC(1)(a) of the Central Excise Act read with Rule 15(2) of the Cenvat Credit Rules, The appellant contested the show-cause notice by fili....

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....on the same. Within the factory premises, they are maintaining their canteen, which is also a statutory requirement under Section 46 of the Factories Act. The appellant has about 1000 employees working in their factory. Appellant is availing the service of an agency to supply them the required manpower/labour to enable them to run the canteen. They have taken credit of the Service tax paid on the services utilized by them for deployment of manpower to run their canteen. Thus, the input service is not in the nature of canteen service or outdoor canteen service and further the activity of running and maintaining the canteen is relating to the manufacturing business and accordingly, are entitled to the input service under Rule 2(l) of Cenvat C....

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....have produced the "Consent to operate" letter issued by the 'Maharashtra Pollution Control Board' dated 26.3.2007, wherein the Pollution control Board considering the parameters that the Trade Effluent and discharge sewage etc., have given the consent subject to the condition that green belt afforestation is to be done up to 33% on available open space land as per the said consent letter. Thus, maintenance/afforestation and green belt in and around factory premises is an essential part, is the Mandatory Activity under the law of the land, so as to comply with the provisions of Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention & Control of Pollution) Act, 1981 read with relevant Rules. Accordingly, the disallowanc....