Case Law Details
Case Name : M/S. Tata Steel Ltd. Vs. Commissioner Of Central Excise & Service Tax, Jamshedur (Cestat Kolkata)
Appeal Number : ST-70270-70271/13
Date of Judgement/Order : 19/04/2016
Related Assessment Year :
Canteen services ,House keeping and cleaning service- CENVAT credit allowed- [Rule 2(l) of Cenvat Credit Rules, 2004]
Case in favor of assessee
Case referred :
Resil Chemicals Pvt. Ltd. v. CCE, Bangalore-I, (2014) 36 STR 1260 (Kar.) Commr. of C.Ex., & S.T., LTU, Chennai v. Rane TRW Steering Systems Ltd., (2015) 39 STR 13 (Mad.) NTF (India) Pvt. Ltd. v. CCE, Delhi-III, (2013) 30 STR 575 (Tri.-Del.)
Fact of the case
- Appeals have been filed by assessee against the commissioner Appeal against Order-in-Original No.58-59/Commr./2012 dated 30.11.2012, issued on 08.01.2013 passed by Commissioner of Central Excise & Service Tax, Jamshedpur as Adjudicating authority .
- Two show cause notice was issued to assessee amounting to Rs. 1,17,22,850 and Rs. 28,45,319.
- That Adjudicating authority only denied CENVAT Credit with respect to Canteen services and House Keeping/Cleaning Services availed by the Appellant in the office building situated inside the factory premises of the Appellant.
- Advocate made the Bench go through the definition of input services given under Rule 2(l) of Cenvat Credit Rules, 2004 and argued that both the Canteen Services and House Keeping/Cleaning Services in the office building are the services utilized in relation to the manufacture.
- He relied upon the case law of Resil Chemicals Pvt. Ltd. v. CCE,Bangalore-I [2014 (36) STR 1260(Kar.)] and emphasized that Karnataka High Court has held that Canteen Services are eligible for CENVAT Credit. So far as admissibility of CENVAT Credit on House Keeping/Cleaning Services are concerned, Ld.Advocate relied upon the case law of Madras High Court in the case of Commr. Of C.Ex., & S.T., LTU, Chennai v. Rane TRW Steering Systems Ltd. [2015 (39) STR 13 (Mad.)]
- Heard both sides and perused the case records. The issue involved in the present Appeals is whether CENVAT Credit on Canteen Services and House Keeping/Cleaning Services availed in the office building are admissible to the Appellant when the same are situated within the licensed factory premises of the Appellant. It is observed from the relied upon case laws that the issue is no more res integra and credit on Canteen Services and House Keeping/Cleaning Services has been held to be admissible. Respectfully following the ratio of the case laws relied upon by the Appellant it is opined that CENVAT Credit on Canteen Services and House Keeping/Cleaning Services has been correctly availed by the Appellant. Accordingly, Appeals filed by the appellant are allowed.
CENVAT Credit on Canteen Services and House Keeping/Cleaning Services availed in office building are admissible to Assessee when same was situated within licensed factory premises of Assessee.
About the Author
: Author CA. Sanjeev Singhal is practicing chartered accountant in Gurgaon and having specialisation in Service Tax and Haryana VAT. He can be reached at firstname.lastname@example.org .