M/S. Prism Cement Ltd vs C.C.E. & S.T. Bhopal

[Arising out of Order-In-Appeal No. BPL-EXCUS-000-APP-028-14-15, dated 09.05.2014 passed by Commissioner (Appeals) Bhopal]

For approval and signature:

Hon'ble Mr. S.K. Mohanty, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the 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?

4 Whether Order is to be circulated to the Departmental authorities?

M/s. Prism Cement Ltd. ...Appellant

Vs.

C.C.E. & S.T. Bhopal Respondent

Appearance:

Mr. Anurag Kapur (Advocate) for the Respondent

Mr. M.R. Sharma, DR for the Appellants

CORAM:

Hon'ble Mr. S.K. Mohanty, Member (Judicial)

Date of Hearing.23.06.2015

Final Order No. 54179 /2015_

Per S K Mohanty:

Denial of Cenvat credit of service tax paid on the manpower recruitment service and cleaning activity service is the subject matter of present dispute.

2. Shri Anurag Kapur, ld. Advocate appearing for the appellant submits that eligibility of cenvat credit with regard to the disputed services is no more res integra in view of the decision of the Tribunal in the case of DCM Sriram Consolidated Ltd. vs CCE Jaipur-I reported in 2014-(36) STR 1120 (Tri. Del) and CCE Surat-II vs Gujarat State Fertilizers & Chemicals Ltd., 2013 (291) ELT 375 (Tri. Ahmd).

3. On the other hand, Shri M.R. Sharma, the ld. DR for Revenue reiterates the findings recorded in the impugned order.

4. Heard the Ld. Counsel for both sides and perused the records.

5. I find that Cenvat credit of service tax paid on the manpower and cleaning activity services used in the guest house has been allowed by the Tribunal in the case of DCM Sriram (Supra),wherein it has been held that providing and up-keeping of guest house, which is adjacent to the factory premises, is necessary business requirement inasmuch as the factory is located outside the city boundaries and as such maintenance of such guest house is associated with the business activities. With regard to maintenance of garden, the Tribunal in the case of Gujarat State Fertilizers (supra) has held that if the condition of Pollution Control Board is to maintain adequate plantation, undoubtedly the respondent herein would require professional services for maintenance of garden by the service providers.

5. Considering the statutory requirements prescribed by the Pollution Control Board for maintenance and operation of the factory, I am of the view that cenvat credit cannot be denied to the appellant on the disputed services.

6. In view of above settled position of law, the impugned order denying the cenvat credit to the appellant is set aside and the appeal is allowed.

(Dictated and pronounced in open court)

(S. K. Mohanty)

Member(Judicial)

Neha

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