Custom, Excise & Service Tax Tribunal
Jbm Auto System Private Ltd vs Commissioner Of Central Excise, ... on 18 July, 2011
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No.E/647/2010
[Arising out of Order-in-Appeal No.83/2010 (M.III) dt. 9.7.2010 dated passed by the Commissioner of Central Excise (Appeals), Chennai]
For approval and signature:
Honble Ms.JYOTI BALASUNDARAM, Vice-President
1. Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? :
2. Whether it should be released under Rule 27 of the
CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? :
3. Whether the Member wishes to see the fair copy of
the Order? :
4. Whether Order is to be circulated to the Departmental
Authorities? :
JBM Auto System Private Ltd.
Appellants
Versus
Commissioner of Central Excise, Chennai
Respondent
Appearance:
Shri S.Gokornesan, Advocate Shri Parmod Kumar, SDR For the Appellants For the Respondent CORAM:
Honble Ms.Jyoti Balasundaram, Vice-President Date of hearing : 18.7.2011 Date of decision : 18.7.2011 Final Order No.____________ Credit of Rs.13,966/- has been disallowed on man power supply service availed for garden maintenance work on the ground that it is not an eligible input service for availing CENDVAT credit of service tax in terms of the definition of input service as per CENVAT Credit Rules, 2004 and interest has been levied thereon along with equal amount of penalty under Section 11AC of the Central Excise Act, 1944.
2. I have heard both sides. The Tamil Nadu Pollution Control Board has granted consent to the assessees to manufacture goods subject to condition of gardening in the plant premises the industry is required to ensure that minimum three varieties of trees (Eucalyptus, Subabul and any other suitable variety) are planted at the destiny of not less than 1000 trees per acre of land. The requirement of permission of the Tamil Nadu Pollution Control Board is as per Section 41A of the Factories Act, 1948 as amended in 1987 and the consent order has been renewed from time to time. But for the consent order, the assessees cannot carry on manufacture. Therefore, the garden maintenance service has a nexus with the activity of the business of manufacture by the assessees. The decision of the Tribunal in Brakes India Ltd. Vs CCE Mysore [2010 (19) STR 424] holding that, in these circumstances, the man power services used for garden maintenance is required as infrastructure for manufacture and clearance of final products and that credit is admissible [which decision has been followed in CCE Hyderabad Vs Voith Turbo Pvt. Ltd.(2011 (21) STR 52)] is applicable on all fours to the facts of the present case and following the ratio thereof, I set aside the impugned order and allow the appeal.
(Operative part of the order was pronounced in open court on 18.7.2011) (JYOTI BALASUNDARAM) VICE-PRESIDENT gs 2