M/S. Koch Chemical Technology Group ... vs Commissioner Of Central Excise & S.T., ...
- CitationAppeal No. : E/12602/2013
Ratio decidendi
The rule this decision rests on
Cenvat credit on input services of gardening and housekeeping is admissible where the services are connected to the manufacturer's business of producing and selling final products, including where maintenance of the factory's garden and cleanliness is undertaken in discharge of the manufacturer's statutory obligation to keep its factory in an eco-friendly manner and its concept of social responsibility; the denial of such credit on the ground that the services are not integrally connected to manufacture cannot stand where the High Court has held that such landscaping and garden maintenance qualifies for input service credit, the Tribunal's contrary decision in Sri Rama Vilas Service Limited being displaced by that binding High Court view.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Arising out of OIA-PJ/144/VDR-I/2013-14 dated 17.06.2013 Passed by Commissioner (Appeals) Central Excise & Customs, Vadodara
M/s. Koch Chemical Technology Group India Pvt. Limited : Appellant (s)
Vs.
Commissioner of Central Excise & S.T., Vadodara : Respondent (s)
Represented by :
For Assessee : None.
For Revenue : Shri Gobind Jha, A.R.
For approval and signature :
Mr. P.K. Das, Hon'ble Member (Judicial)
1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No 2 Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether their Lordships wish to see the fair copy of the Order?
Seen 4 Whether Order is to be circulated to the Departmental authorities?
Yes
CORAM :
Mr. P.K. Das, Hon'ble Member (Judicial)
Date of Hearing / Decision : 08.01.2015
ORDER No. A/10038/2015 Dated 08.01.2015
Per : Mr. P.K. Das;
None appears on behalf of the appellant. There is no application for adjournment.
2. After hearing the learned Authorised Representative for the revenue and on perusal of the records, I find that the adjudicating authority denied cenvat credit of Rs. 84,245/- on input service on Gardening and Housekeeping Services. It is seen from the impugned order that the appellant had taken a stand that maintenance of garden and cleanliness of factory is connected to their business activity of production and sale of final products. Learned AR for Revenue submits that the Tribunal in the case of CCE, Trichy vs. Sri Rama Vilas Service Limited 2011 (271) ELT 317 (Tri. Chennai) disallowed the cenvat credit on gardening services.
3. At the request of Bench, Shri Anand Nainawati, learned Advocate places the decision of the Honble Karnataka High Court in the case of Commissioner of Central Excise, Bangalore vs. Millipore India Pvt. Limited 2012 (26) STR 514 (Kar.). In that case, the Honble High Court held that concept of social responsibility and statutory obligation to maintain their factory in eco-friendly manner is also relevant and allowed the input service credit on landscaping of factory and garden.
4. Respectfully following the decision of the Honble Karnataka High Court in the case of Millipore India Pvt. Limited (supra), the order for denial of cenvat credit on gardening and housekeeping services are set-aside. Appeal is allowed with consequential relief.
(Dictated and pronounced in the Court)
(P.K. Das) Member (Judicial) ..KL
2
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