AI Drafter 
TaxTMI 
TaxTMI 
2024 (1) TMI 246
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....luent treatment are admissible input service and credit is admissible. He placed reliance on the following judgments: - • Cheminova India Ltd vs. CCE & ST, Surat -II - E/11732/2014- Final Order dated 28.06.2023 • Adroit Pharmachem Pvt Ltd vs. Commissioner of C.Ex. & ST., Vadodara - 2022 (1) TMI 59 CESTAT Ahmedabad • Commissioner of C.Ex.& ST., Surat-II vs. M/s. Kanoria Chemicals & Industries Ltd - 2015 (7) TMI 970 CESTAT Ahmedabad • Wipro Enterprises (P) Ltd vs. Commissioner of GST & Central Excise - 2018 (12) TMI 1167 CESTAT Chennai. • Anar Chemicals Pvt. Ltd vs. CCE - 2011 (24) STR 32 (Tri.Ahmd) • Indian Farmers Fertilizer Cooperative Ltd vs. Collector, - 1996 (86) ELT 177 (SC) • Union of India vs. Hindustan Zinc Ltd - 2019 (367) ELT 616 (Raj) • Collector of C. Ex. Vs. Eastend Paper Industries Ltd - 1989 (43) ELT 201 (SC) • Deepak Fertilizers & Petrochemicals Corpn. Ltd vs. C.C.Ex., Belapur - 2013(32) STR 532 (Bom.) • C.C.E & Cus., Aurangabad vs. Endurance Technology Pvt Ltd - 2017 (52) STR 361 (Bom.) • Huhtamaki PPL Ltd vs. Commissioner o....
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.... manufacture of such ammonia to be entitled to the said exemption. 10. In the result, the appeals are allowed. The orders under appeal are set aside. It is held that the raw naphtha used to produce ammonia which is used in the water treatment, steam generation, inert gas generation and effluent treatment plants of the urea plant of the appellants is entitled to the exemption provided by the Exemption Notification No. 187/61 as amended from time to time. 11. There shall be no order as to costs." b) Cheminova India Ltd vs. CCE & ST, Surat -II - E/11732/2014- Final Order dated 28.06.2023 - "07. We have carefully considered the submissions made by both the sides and perused the records. Since all the appeals are on the same issue though heard on different dates i.e. 20.04.2023 & 29.05.2023, we are deciding all the appeals together. We find that the revenue has denied the cenvat credit on services related to the effluent treatment activity of the waste generated during the course of manufacture of the final product of the appellant. The denial of cenvat credit is on the ground that the effluent treatment activity is post manufacture which has nothing ....
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....effluent treatment plant, was held to be eligible for exemption. Para 9 of this case law is relevant and is reproduced below:- "9. That leaves us to consider whether the raw? naphtha used to produce the ammonia which is used in the effluent treatment plant is eligible for the said exemption. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. 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. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption." 5.1 In view of the above observations made by Apex Court, treatment of effluent from....
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....t are to be treated as part and parcel of manufacturing process for production of end product. Further, on going through the ratio of law declared in the above judgment, is to the effect that definition of input services is wide and take into its ambit all the activities relating to the functioning of business. Admittedly, the Pollution Control Board requires the appellant to maintain Effluent Treatment Plant upto a certain standard and all the services used by the assessee for maintenance of such standard has to be held as activities relating to business. In the case of Brakes India Ltd. referred supra, it was held that creation and maintenance of garden within the factory premises by treating industrial and domestic sewage water, is mandatory requirement from Pollution Control Board and the man power services used for garden maintenance are required as infrastructure for manufacture and clearance of final product and the credit is admissible in respect of the same. Similarly, in the case of Coca Cola India Pvt. Ltd. referred supra, it stand held that the expression "business" is an integrated/continuous activity and not confined or restricted to mere manufacture of production. Th....
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....nia is used directly in the manufacture of fertilisers; the raw naphtha so used is, it is not disputed, eligible to the exemption. The question is whether the ammonia used in the off-site plants is also ammonia which is "used elsewhere in the manufacture of fertilisers". The water treatment, steam generation and inert gas generation plants are part and parcel of the composite process that produces as its end-product urea, which is a fertiliser. These off-site plants are part of the process of the manufacture of urea. There is no good reason why the exemption should be limited to the raw naphtha used for producing ammonia that is utilised directly in the urea plant. The Exemption Notification does not require that the ammonia should be used directly in the manufacture of fertilisers. It requires only that the ammonia should be used in the manufacture of fertilisers. The Exemption Notification must be so construed as to give due weight to the liberal language it uses. The ammonia used in the water treatment, steam generation and inert gas generation plants, which are a necessary part of the process of manufacturing urea, must, therefore, be held to be used in the manufacture of ammon....
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....n essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. 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. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption. 10. In the result, the appeals are allowed. The orders under appeal are set aside. It is held that the raw naphtha used to produce ammonia which is used in the water treatment, steam generation, inert gas generation and effluent treatment plants of the urea plant of the appellants is entitled to the exemption provided by the Exemption Notification No. 187/61 as amended from time to time. In view of the above judgments and other judgments cited by the appellant, it can b....
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....nput service means any services of the description falling in sub-clauses (i) and (ii). Rule 2(l) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tribunal, proceeded to interpret the inclusive part of the definition and held that the Legislature restricted the benefit of Cenvat credit for input services used in respect of inputs only to these two categories viz. for the procurement of inputs and for the inward transportation of inputs. This interpretation which has been placed by the Tribunal is ex facie contrary to the provisions contained in Rule 2(l). The first part of Rule 2(l) inter alia covers any services used by the manufacturer directly or indirectly, in or in relation to the manufacture of final products. The inclusive part of the definition enumerates certain specified categories of services. However, it would be farfetched to interpret Rule 2(l) to mean that only two categories of services in relation to inputs viz. for the procurement of inputs and for the inward transportation of inputs were intended to be brought within t....