2017 (4) TMI 987

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....ISD invoices in respect of Gardening service, hiring of Tractor for watering the gardens, Maintenance service and Renting of Immovable Property service during the period from 2009-10 to 2014-15 (up to 06/2014). Accordingly, two Show Cause Notices were issued proposing to recover service tax credit to the tune of Rs. 16,98,544/- (up to August 2013) and for recovery of service tax credit of Rs. 4,77,650/- in the period September 2013 to June 2014. After due process of law, the adjudicating authority passed order disallowing the credit on the subject services and confirming the demand, interest and imposing equal amount of penalties. Being aggrieved, the appellant filed appeal before the Commissioner (Appeals). Vide order impugned herein, the ....

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....refore, the appellant has availed the services of gardening and also hiring tractors for the purpose of watering the gardens. The input services therefore, is not for the personel consumption or personal use of any employee. Since the services are availed in compliance to the condition laid in the clearances/permission certificate, the subject services have direct nexus with the manufacturing activities of the appellant. The Ld. Counsel relied upon the judgment in the case of India Glycols Ltd., Vs. CCE, Meerut [2013 (292) ELT 312 (Tri.   Del.)], wherein, in similar set of facts the Tribunal had allowed credit on services availed for the purpose of maintaining green belt prior to 01.04.2011. He submitted that tractors were hired f....

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....elt. The service of gardening has been availed by the appellant for the purpose of maintaining green belt in compliance with the environmental clearance certificate. In India Glycols Ltd., (supra) and identical situation was considered by the Tribunal and the Tribunal observed as under: 6. I find that the permission given to the appellant by the Ministry of Environment for expansion of their production capacity is subject to condition that the appellant unit maintains 33% of the plant area as green belt. Since this is the statutory requirement and without fulfilling the same, the appellant unit would not be allowed to carry out manufacturing activity, the services of manpower supply used for the maintenance of the green belt have nexus wit....