Custom, Excise & Service Tax Tribunal
Ip Rings Ltd vs Commissioner Of Gst&Amp;Cce(Chennai ... on 3 July, 2018
1
IN THE CUSTOMS, EXCISE AND SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No. E/40252/2018
(Arising out of Order-in-Appeal No. 146/2017 (CXA-II) dated 30.09.2017
passed by the Commissioner of Central Tax (Appeals-II): C.G.S.T. & C.E.,
Chennai)
M/s. IP Rings Ltd. : Appellant
Vs.
Commissioner of Central Tax, G.S.T & C.E., : Respondent
(Chennai Outer Commissionerate) Appearance:-
Shri. M. N. Bharathi, Advocate for the Appellant Shri. R. Subramaniyan, AC (AR) for the Respondent CORAM:
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial) Date of Hearing/Decision:03.07.2018 Final Order No. 41936 / 2018 Brief facts are that the appellants, who are engaged in manufacture and clearance of Piston Rings, Piston Pins and transmission components, were availing the facility of Cenvat Credit of service tax paid on various input services. They availed Manpower Supply Services which were used for housekeeping, canteen and also for cleaning of toilets. The Department 2 was of the view that the said services are not eligible for credit. Show Cause Notice was issued proposing to disallow the credit and to recover the wrongly availed credit along with interest and also for imposing penalties. After due process of law, the Original Authority disallowed the credit, confirmed the demand and imposed penalties. In appeal, the Commissioner (Appeals) set aside the penalties. Aggrieved by the disallowance of credit and confirmation of demand, the appellant is now before the Tribunal.
2. The learned Counsel, Shri. M. N. Bharathi, submitted that the Manpower Supply Services were used for manpower/workers to engage in housekeeping and canteen as well as for cleaning the toilets. These are essential services and are integrally connected to the manufacturing activity. He relied upon the decision in the case of Wipro Ltd. Vs. Commissioner of C. Ex., Pondicherry [2018 (10) G.S.T.L. 172 (Mad.)].
3. The learned AR, Shri. R. Subramaniyan, supported the findings in the impugned order.
4. Heard both sides.
5. The issue for consideration is whether the appellants are eligible for credit on Manpower Supply Services used for services of housekeeping and canteen as well as cleaning of toilets. I find that these services are 3 integrally connected to the manufacturing activity and very much essential to keep the factory premises, office of factory, etc., in a clean and hygienic manner. The denial of credit on such services is unjustified and requires to be set aside, which I hereby do.
6. In the result, the impugned order is set aside. The appeal is allowed, with consequential reliefs, if any.
(Dictated and pronounced in open court) (Sulekha Beevi C.S.) Member (Judicial) Sdd