Case Law Details
Solvay Specialities India Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT Ahmedabad held that services related to pollution control of the factory is covered within the term ‘input services’ as per rule 2(l) of Cenvat Credit Rules, 2004 and hence eligible for cenvat credit.
Facts- The appellant in the month of May 2006 acquired Polymer Division of factory of Gharda Chemicals Ltd. The appellant obtained central excise registration on 16.05.2006 and undertook manufacture of excisable goods of Chapter 39 of the Central Excise Tariff at the said factory. The other two appellant are employees of the appellant company M/s. Solvay Specialities India Pvt Ltd. For the purpose of acquiring the said factory, the appellant commissioned the services of technically qualified environmental consultancy firm called Environmental Resources Management, Belgium (ERM) for carrying out “Environmental due diligence Auditing” of the site for investigation of environmental impact by way of contamination of the soil and ground water. However the report of said Environmental due diligence Audit was also required for obtaining the consent and no objection of the Gujarat Pollution Control Board to the acquisition of the said factory by the appellant.
For the service of conducting Environmental due diligence Audit the investigation into the presence and extent of soil and ground water contamination and preparing the report with suggested remedial measures. The said ERM raised their invoices dated 19.12.2006. The appellant took the cenvat credit of service tax of Rs. 54,94,329/- on the said service. Further for the service of carrying out and implementing the remedial measures during 2008 -2009 onwards, the service provider charge the service tax of which the appellant took cenvat credit amounting to Rs 55,81,531/- and Rs. 50,37,560.
Show cause notice was issued proposing denial of cenvat credit of Rs. 3,61,594/- paid on inputs such as TMT Bars, Steel Support Structure, Joists, Beams, Angles, Channels, and MS Angles etc. on the ground that same neither be considered as capital goods nor inputs. A demand for duty of Rs. 6,38,766/- on wasrte & Scrap of Capital goods was also proposed. The demand proposed in the show cause notices were confirmed therefore, the present appeals.
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