2019 (5) TMI 1613

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.... is regarding admissibility of Cenvat credit of service tax paid on excavation services by the respondent in respect of tailing dam constructed by the respondent and used for disposal of industrial waste and polluted water in compliance with the Environment Laws. Period of demand is from Feb. 2012 to March, 2015 for an amount of Rs. 86,01,412/- with a penalty of Rs. 43,00,706/- under the provisions of Cenvat Credit Rules, 2004 (for short Credit Rules). 3. Brief facts of the case are that the respondent is engaged in the manufacture of zinc and lead concentrates and is also availing Cenvat credit on the various inputs, capital goods and input services in terms of Credit Rules. The respondent is mining ore and concentrating he said ore for....

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....m, which is a storage place for industrial waste. This is a requirement of Pollution Control department. I further find that the activity of effluent treatment or pollution control is a part of the manufacturing activity itself and not simply an ancillary activity. The Hon'ble Supreme Court has very clearly explained that "the apparatus used for such treatment of effluents in a plant manufacturing a particular end product is part and parcel of the manufacturing process of that end product." I am in total agreement with the appellant "s submission that without complying with the environmental laws, it is not possible to carry on the manufacturing activity. It is essential to arrange a proper waste disposal arrangement to run the manufacturin....

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....ir own case, vide Final Order No. 52328/2018 dated 19.6.2018, wherein, such credit has been held to be admissible. The relevant portion of the order is reproduced herein as under : "9. On an identical issue in respondent's own case, this Tribunal in Excise Appeal Nos. 50958 & 50636 of 2014, titled as M/s. Hindustan Zinc Limited vs. CCE, Jaipur-II, vide Final Order No. A/53619-53620/2017-EX[DB], dated 29/05/2017 held that the Cenvat credit in dispute is allowable to the respondent and recorded as under:- "............. 8. Having considered the rival contentions, we find that the appellant assessee cannot operate their business or manufacturing facility of dutiable/ excisable goods without compliance with the direct....