UPL Ltd Vs C.C.E. & S.T.- Valsad (CESTAT Ahmedabad)
CESTAT Ahmedabad held that effluent treatment activity is essential in relation to the manufacture of final product and accordingly, CENVAT Credit in respect thereon cannot be denied.
Facts- The issue involved in the present case is that whether the appellant is entitled for cenvat credit in respect of waste treatment services received from Bharuch Enviro Infrastructure Limited, Ankleshwar for treatment of their factory’s waste which arises out of the manufacture of final product.
Conclusion- Hon’ble Supreme Court judgment in the case of Indian farmer Fertiliser has held that effluent treatment activity is essential in relation to the manufacture of final product. In the present case, the entire case of the department is that the effluent treatment activity is not in relation to the manufacture of the final product which is contrary to the Apex Court judgment.
Held that the effluent treatment activity is indeed in or in relation to the manufacture of final product, therefore, the cenvat credit cannot be denied. Accordingly, the issue is no longer res-integra and same has been decided in favour of the assessee. Accordingly, the impugned order is set aside. Appeal is allowed.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that whether the appellant is entitled for cenvat credit in respect of waste treatment services received from Bharuch Enviro Infrastructure Limited, Ankleshwar for treatment of their factory’s waste which arises out of the manufacture of final product.
2. Shri Prakash Shah, learned counsel appearing on behalf of the appellant submits that requirement of treatment of factory waste is as per the Gujarat Pollution Board order dated 27.05.2008 and according to the consent of GPCB, the appellant has to mandatorily follow the rules for specific disposal of Trade Effluents and Emissions, as per the specifications listed by the GPCB in the consent order of GPCB wherein it is specifically mandated that High COD and Low TDS effluents shall be sent to BEIL, a GPCB controlled site for proper treatment and disposal of the waste. It is his submission that the treatment of the waste arising out of the manufacture is mandatory as per the Gujarat Pollution Control Board and without complying the order of the GPCB regarding treatment of factory waste, the appellant cannot carry out their manufacturing activity, therefore, the effluent treatment service received by the appellant is in or in relation to manufacture of final product and the same is admissible input service and credit must be allowed. He placed reliance on the following judgments:
