Case Law Details
Cheminova India Limited Vs C.C.E. & S.T.-Surat (CESTAT Ahmedabad)
CESTAT Ahmedabad held that services availed in respect of effluent treatment plant for treatment of industrial waste is in relation to the overall manufacturing activity and hence CENVAT Credit is duly admissible.
Facts- The appellant is engaged in the manufacture of pesticides and insecticides which are falling under chapter 38. For running the factory, the appellant obtained permission from Pollution Control Board under Water (Prevention and Control of pollution Act, 1974) and Air (Prevention and Control of Pollution Act, 1981).
The appellant have availed the cenvat credit in respect of the services received in relation to effluent treatment of the industrial waste. The case of the department is that the said cenvat credit is not admissible to the appellant on the ground that the effluent treatment activity is post manufacture and the same is not used in or in relation to manufacture of final product accordingly, the cenvat credit so availed by the appellant was denied therefore, the present appeals filed by the appellant.
Conclusion- Held that the issue is no longer res-integra as the services availed in respect of effluent treatment plant for treatment of industrial waste is in relation to the overall manufacturing activity of the appellant’s final product in the appellant’s factory therefore, the said services are input service hence, the credit is admissible.
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