ELECTRICAL RESEARCH & DEVELOPMENT ASSOCIATION Vs. CCE
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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P.K.Das, Member (J) -
(1.)THE appellant filed this appeal against the denial of CENVAT Credit of Rs. 2,90,599.00 for the period 2007 -2008 to 2011 -2012 on the input service, namely Rent -a -cab service and Gardening service.
(2.)AFTER hearing both the sides and on perusal of the records, I find that Rent -a -cab Operator service or Bus operator services was utilized by them for transportation of their staff members, officers and employees from their residence to the factory and from the factory to the residence and for many other works undertaken by their staff members, officers engaged in the business activity of production and sale of finished goods. It is also contended by the appellant that the gardening services were used for controlling to the pollution and environment of the factory premises and production activity.
Ld. Authorised Representative for Revenue submits that these services have no direct nexus to the manufacturing activity. He also submits that the gardening would not be necessary for pollution control.
(3.)I find that the Tribunal in the case of Mundra Port & SEZ Ltd. vs CCE Rajkot : 2008 -TIOL -1691 -CESTAT -AHM allowed the CENVAT Credit on Rent -a -cab service on the identical facts. It is seen that the Tribunal in the case of M/s ISMT Ltd. Vs CCE Aurangabad, 2010 -TIOL -27 -CESTAT -MUM, held that a good garden creates a better atmosphere and environment which increases the working efficiency and CENVAT Credit was allowed.
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