TaxTMI 
TaxTMI 
2026 (2) TMI 1268
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....s were inadmissible under amended Rule 2(l) w.e.f. 01.04.2011, proposing disallowance aggregating to Rs.67,77,421/-, which were adjudicated through the Orders-in-Original indicated in the table below. 1.3 On appeal, the Commissioner (Appeals), vide common Order-in-Appeal No. 461/2017 dated 12.12.2017, held several services to be eligible but allowed credit subject to verification, while denying credit on pest control, gardening/cleaning, civil works, cab/logistics, housekeeping manpower and membership services. 1.4 Aggrieved by the partial denial and conditional directions, which in substance amounts to remanding the issue back for verification despite findings on eligibility, the Appellant has filed the present three appeals before this Tribunal as detailed in the below table: - Appeal No SCN No. & Date Period Covered Credit Disputed (Rs.) OIO No. & Date Common OIA No. & Date E/40527/18 07/2015 Dt. 01.04.2015 March 2014 4,51,667 23/2017 07.03.2017 461/2017 12.12.2017 E/40528/18 14/2015 Dt 02.04.2015 Nov 2014 - Jan 2015 4,88,368 24/2017 07.03.2017 461/2017 12.12.2017 E/40529/18 13/2016 08.04.2016 March 2015 58,....
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....s on the assessee and failure to produce technical documents disentitles credit. 5. From the appeal records, we find that the total disputed CENVAT credit involved in the proceedings is Rs.67,77,421/-. Out of this amount, credit to the extent of Rs.40,48,776/- has been allowed by the Commissioner (Appeals) under the impugned order, though such allowance has been made subject to verification by the original Adjudicating Authority. Thus, the dispute before us now survives only in respect of the CENVAT credit amounting to Rs.27,28,645/-, which has been disallowed by the Commissioner (Appeals) in relation to the following services: pest control/housekeeping, gardening and cleaning, construction services (commercial and industrial), cab services and logistics, plant civil work, labour/manpower services for gardening and cleaning, and membership services. 6. The following questions now arise for determination: - i. Whether the appellant is entitled to avail CENVAT credit amounting to Rs.27,28,645/- on the disputed input services in terms of Rule 2(l) of the CENVAT Credit Rules, 2004, as amended with effect from 01.04.2011? ii. Whether the disputed services satisfy....
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....ect of pest control and housekeeping services, the appellant has claimed CENVAT credit on the ground that these services were availed for disinfection, sanitation and hygienic upkeep of the manufacturing premises. We find that maintenance of hygienic and pest free conditions in an industrial unit is not a matter of employee comfort or welfare, but a statutory and operational necessity for the smooth functioning of the manufacturing process. Such services are directly connected with the upkeep of the factory premises and are essential to ensure compliance with safety, health and quality control requirements, without which manufacturing activity cannot be efficiently carried out. We note that the Tribunal Hyderabad in Sai Life Sciences Ltd. v. CCE, C & ST, Hyderabad, reported at 2017 (51) S.T.R. 55 (Tri.-Hyd.), has categorically held that CENVAT credit on pest control and housekeeping services continues to be admissible even after 01.04.2011, as such services have a clear nexus with the manufacturing operations and cannot be treated as personal consumption of employees. We further note that in the appellant's own case, M/s. CETEX Petrochemicals Limited v. Commissioner of CGST & Centr....
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....liance and are not hit by the exclusion clause. However, since no invoices or supporting documentary material have been placed before this Bench, the matter is remanded to the adjudicating authority for limited verification of nexus, eligibility and quantification. 13.3 In respect of construction services (commercial and industrial), we find that Rule 2(l)(A) specifically bars credit on construction services used for construction of buildings or civil structures or for laying of foundation or support structures for capital goods. However, repair, renovation and modernization of plant and factory premises are specifically included within the definition. The appellant contends that the services pertain to repair and maintenance of plant machinery and storage tanks. In the appellant's own case reported at 2025 (1) TMI 1694 (CESTAT Chennai), this Tribunal allowed credit after examining documentary evidence and concluding that the services were in the nature of repair/maintenance and not hit by the exclusion clause. Respectfully following the said decision, we hold that credit is admissible in principle if the services pertain to repair/renovation and are not barred construction. Sin....
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....nd that manpower deployed for housekeeping, cleaning and maintenance of factory premises has nexus with manufacturing operations. Tribunal decisions including Ultratech Cement Ltd. v. CCE, Hyderabad, reported at 2017 (49) S.T.R. 94 (Tri.-Hyd.), support eligibility of such services even post-01.04.2011, provided they are not exclusively used for excluded activities. Accordingly, credit is admissible in principle, subject to verification of invoices and nexus. 13.7 In respect of membership services, the appellant submits that the disputed credit pertains to membership subscription paid to the Confederation of Indian Industry (CII), which is a premier industry association. The Department contends that membership services are specifically excluded under Rule 2(l)(B). We find that the exclusion clause targets membership of clubs or associations when such services are used primarily for personal consumption or recreational purposes of employees. However, corporate membership of industry bodies such as CII, undertaken for business development, industry interaction, policy advocacy and promotion of business interests, cannot be equated with recreational club membership. We note that the....