Case Law Details
Court :Tri-Mumbai
Citation : Balakrishna Industries Ltd v. Commissioner of C.Ex, Aurangabad, 2010 (18) STR 600 (Tri-Mumbai):
Brief :The assessee filed appeal to the Tribunal on denial of credit by lower authority on factory garden maintenance, plant housekeeping services. As regards insurance and tours and travels credit, it was denied on the grounds of non-availability of records.
Balakrishna Industries Ltd Vs. Commissioner of C.Ex, Aurangabad, 2010 (18) STR 600 (Tri-Mumbai)
The assessee filed appeal to the Tribunal on denial of credit by lower authority on factory garden maintenance, plant housekeeping services. As regards insurance and tours and travels credit, it was denied on the grounds of non-availability of records.
The assessee pleaded that the case was covered by the decision of ISMT Ltd. v. CCE & Cus., Aurangabad (Tri-Mum.) with regard to plant housekeeping and garden maintenance service, where it was held that credit of such expenses was admissibe.
With regard to other two services, copies of invoices and records which where not placed before the lower authority were submitted and plea was made to remand the case to the adjudicating authority.
Based on the case of chemplast Sanmar Ltd. v. CCE, Salem which stated that the definition of input services which includes activities in relation to business cannot be interpreted to include post-manufacturing activity, it was argued by the Revenue that credit was not admissible.
The Tribunal remanded the case back to adjudicating authority in respect of Insurance service and tours and travels service. With regard to garden maintenance service, it was held that the garden creates better environment which increases working efficiency of the factory and therefore credit is admissible.
