Cenvat Credit on Services for Maintaining Garden within Factory Premises allowable as It is mandated by Pollution Control Committee: CESTAT [Read Order]

The CESTAT, Ahmedabad bench has held that cenvat credit in respect of garden maintenance service for the garden being maintained within the factory premises is allowable under the Cenvat Credit Rules.

The department, earlier, denied credit to the appellants contending that the garden is not maintained for Pollution control, whereas the same is maintained for beautification, therefore, the credit is not admissible.

The appellant contended that garden maintenance is a mandatory requirement as per Pollution Control Board. As per the Consent Order dated 14.03.2018 and 23.01.2015 issued by Pollution Control Committee wherein he pointed out that the consent order is subject to green up the surrounding area inside and outside the factory, therefore, to meet with this condition they are maintaining the garden in the factory. He further submits that they are manufacturing goods falling under Chapter 32 which is ‘Printing inks’ which creates pollution, therefore, it is a mandatory requirement to maintain the garden to keep the environment pollution free, therefore, the credit is admissible on garden maintenance service.

Judicial Member Mr. Ramesh Nair held that the lower authorities had not denied the cenvat credit on gardening service per se but on the ground that the appellant have not established that the garden is maintained for the purpose of Pollution Control.

“This reason of the lower authorities is absolutely incorrect on the face of the facts of the case as submitted by the Learned Counsel. It is evident from the consent order of the Pollution Control Committee for renewing the pollution control license that the appellant is required to green up the surrounding of the factory inside and outside. For this reason only the appellant are maintaining the garden, therefore, the entire basis of the department to deny the cenvat credit does not stand. In various judgements this Tribunal has considered the admissibility of the cenvat credit in respect of garden service,” the Tribunal said.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.