CX - Denying CENVAT credit on cleaning services is against wish of PM, who had initiated Swachh Bharat Abhiyaan to make country clean: CESTAT
By TIOL News Service
MUMBAI, DEC 27, 2017: THE appellant has been denied CENVAT Credit on manpower services on the ground that the invoices issued by the supplier of service does not mention the registration number.
Incidentally, the SCN had sought to deny CENVAT credit on the services of Manpower supplied for gardening service, cleaning service and material handling service on the ground that they do not satisfy the definition of ‘Input Service' as contained in rule 2(l) of CCR, 2004.
The Bench while allowing the credit observed thus –
Gardening service:
+ For running a factory, it is mandatory to maintain a garden by the appellant for controlling the pollution as per Central Pollution Control Boards guidelines. Therefore, without complying this condition, appellant cannot run their factory.
Material handling service:
+ Without handling of material, the appellant cannot run their factory, therefore, the appellant is entitled for input service credit on material handling.
Cleaning service:
+ The reasoning to deny the CENVAT Credit is against the wish of Hon'ble Prime Minister of India, who had initiated Swachchha Bharat Abhiyanon 2nd October 2014 to make the country clean. If we do not clean the environment around us, it will defeat the wish of our Hon'ble Prime Minister. If our surroundings are clean then we will not face the health problem. Therefore, cleaning service is directly relating to the manufacturing activity of the appellant.
The Member (Judicial) also observed that the ground on which credit has been denied by the Commissioner(A) is not mentioned in the SCN and, therefore, the lower appellate authority had gone beyond the scope of the SCN. And, therefore, the findings are devoid of merits.
Concluding that the appellant had correct availed the CENVAT credits, the impugned order was set aside and the appeal was allowed with consequential relief.
(See 2017-TIOL-4542-CESTAT-MUM)