Cenvat Credit: Housekeeping and gardening services

Housekeeping and gardening services availed to maintain factory in eco-friendly manner are eligible for credit

[2015] 57 taxmann.com 131 (Madras)

HIGH COURT OF MADRAS

Commissioner of Central Excise and Service Tax

v.

Rane TRW Steering Systems Ltd.

Rule 2(l) of the Cenvat Credit Rules, 2004 - Cenvat Credit - Input service - Housekeeping Services - Assessee, manufacturer of parts of power steering systems, etc. took credit of 'housekeeping, landscaping and gardening' services - Department denied credit on ground that same has no nexus with manufacture and clearance upto place of removal - HELD : Where an assessee spends money to maintain their factory premises in an eco-friendly manner, tax paid on such services would form part of cost of final products and same would fall within ambit of 'input services' and, therefore, assessee is entitled to claim benefit - Hence, credit of services in question was allowed [Paras 7 to 9] [In favour of assessee]