2018 (12) TMI 1167

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....lso availing CENVAT Credit on inputs, capital goods and input services. 2. On verification of records it was noticed that the appellant had availed the services of Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015 as well as Rent-a-Cab/Tour Operator Services for the periods from April 2008 to March 2009 and December 2011 to October 2012 and had taken input service Credit on the same which was apparently wrong. This prompted the issuance of Show Cause Notices proposing to recover the wrongly availed Credit along with interest and penalty on the ground that the above said services were ineligible input services as per Rule 2(l) of the CENVAT Credit Rules (CCR), 2004. Thereafter, the above p....

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....Water Treatment Service is mandatory as per Pollution Control Board (PCB) norms and is a statutory obligation under the prevailing law for units having a full-fledged manufacturing set-up. He placed reliance on the cases of Commissioner of C.Ex. & Service Tax (LTU) Vs. Lupin Ltd. - 2012 (285) E.L.T. 221 (Tri. Mum.) and Hinduja Foundries Ltd. Vs. Commissioner of Central Excise, Chennai-I - 2017 (47) S.T.R. 241 (Tri. - Chennai). 4.2.2 He submitted that Gardening Services were used for the objective of a better work atmosphere leading to increased productivity thereon; that the same had nexus with their manufacturing activity as well. He submitted that even as per the guidelines of PCB, the appellant was required to maintain garden inside t....

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....ed to be followed. Therefore, I hold that the appellant is eligible for CENVAT Credit on the said service for the period from April 2008 to March 2009, for which reason I set aside the demand for this period. However, for the post amendment period i.e. after 01.04.2011, the above definition was amended to specifically exclude Rent-a-Cab Service, and includes services which are ‚used by a manufacturer, whether directly or indirectly, in or in relation to manufacture of final product and clearance of final products up to the place of removal‛. From the above discussions, I am of the view that the Commissioner (Appeals) has rightly disallowed the Credit on Rent-a-Cab Services for the period from December 2011 to October 2012 and th....