CX - In view of statutory requirement laid down by MPCB, Garden services is an input service: CESTAT
By TIOL News Service
MUMBAI, APR 05, 2017: THE issue is admissibility or otherwise of CENVAT credit on garden services in respect of maintenance of garden located within the factory premises of the appellant.
The appellant submitted that in the following cases the credit has been allowed by the CESTAT.
- Gateway Terminals (I) Pvt. Ltd - 2015-TIOL-1471-CESTAT-MUM
- Cargill India Pvt. Ltd - 2014-TIOL-2571-CESTAT-BANG
Furthermore, maintenance of garden in the factory is a statutory requirement under the Maharashtra State Pollution Control Board order dated 08.12.2005 and 11.05.2009, according to which every factory is required to maintain garden in minimum 33% of the factory premises. Therefore, the maintenance of garden is a statutory requirement, claimed the appellant.
The AR supported the order of the lower authority and cited the decision in Sri Rama Vilas Service Ltd - 2011-TIOL-928-CESTAT-MAD.
The Bench observed -
"6. … as submitted by the ld. counsel the maintenance of garden is statutory requirement as per the Maharashtra State Pollution Control Board, according to which 33% of the premises of the factory should be maintained as garden to minimize the pollution within the factory premises. I have gone through the judgments cited by the counsel and found that the credit has been allowed in various judgments on the garden services. As regards the decision cited by the ld. AR, in case of Sri Rama Vilas Service Ltd. (supra) credit was denied on the ground that there is no nexus with the activity of the input in the factory. However, in the present case it was brought on record that the maintenance of garden is statutory requirement under the Maharashtra State Pollution Control Board. As regards the decision of Grasim Industries (supra), credit was disallowed as there is no nexus with the manufacturing activity. In this case also the important aspect of requirement of garden as per Maharashtra State Pollution Control Board was not considered. Therefore, both decisions of the ld. AR stand distinguished."
Holding that CENVAT credit in respect of garden services for maintenance of garden in the factory premises is admissible, the impugned order was set aside and the appeal was allowed.
(See 2017-TIOL-1126-CESTAT-MUM)
|