2018 (8) TMI 1569 – CESTAT CHENNAI – TMI – CENVAT credit – input services – Garden upkeep services – Interior Decorator service – Renting of immovable property services – Held that:- The appellant is a manufacturer and as per pollution control norms, they are required to maintain certain percentage of green area in their factory premises – credit allowed – appeal allowed.
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Interior decorator services – Held that:- It is brought out from evidence that the appellant had furnished invoices relating to the services – The appellant had done some minor civil work with respect to workstations used for overseeing manufacturing operations inside the factory – credit on these services allowed.
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Renting of immovable property services – Held that:- A similar issue was analysed by the Tribunal in the case of Carrier Air conditioning & Refrigeration Ltd. [2016 (4) TMI 103 – CESTAT CHANDIGARH]. The Tribunal observed that the credit availed on the renting of branch offices was eligible – cr
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w cause notice was issued proposing to deny the credit on these services. After due process of law, the original authority disallowed the credit in respect of certain services and confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) disallowed the credit in respect of garden upkeep services, interior decorator services, renting of immovable property services. Hence this appeal. 4. On behalf of appellant, the Ld.Consultant, Sh.S.Adithya submitted that in Appeal No.ST/42486/2017 the issue arising for consideration is only whether the appellant is eligible for availing credit on renting of immovable property services. In Appeal No.ST/42487/2017 alongwith the above issue, there is disallowance of credit on garden upkeep services, as well as interior decorator services. He submitted that the appellant had availed the garden upkeep/maintenance services as per the requirement under the Statute to maintain a garden (Green Area) in terms of Pollution Contr
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e used for procuring orders and coordinating with customers for the purpose of supply of materials, its installation and doing market research. These activities are integral to the manufacturing activity and therefore is eligible for credit. He relied upon the decision in the case of Carrier Airconditioning & Refrigeration Ltd. Vs C.C.E., Delhi-IV 2016 (41) S.T.R. 824 (Tri. – Chan.) 5. The Ld.AR, Sh.R.Subramanian supported the findings in the impugned order. He submitted that al the above services do not have nexus with the manufacturing activity and therefore the authorities below have rightly denied the credit. In respect of interior decorator services, he submitted that the appellant had not furnished sufficient proof to show that the services were used for work situations. 6. Heard both sides. 7. The first issue that arises for consideration is whether the appellant is eligible for garden upkeep/maintenance services. The appellant is a manufacturer and as per pollution control
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e services is eligible. 9. The authorities below have disallowed the credit on renting of immovable property services in respect of branch offices. It is consistently argued by the appellants that they have setup branch offices in various places from where they collected sales orders from customers and follow up for supply of materials, payments and after sales coordination. A similar issue was analysed by the Tribunal in the case of Carrier Air conditioning & Refrigeration Ltd. (supra). The Tribunal observed that the credit availed on the renting of branch offices was eligible. Following the same, I am of the view that the disallowance of credit is improper and requires to be set aside which I hereby do. 10. In the result, the impugned orders are modified to the extent of allowing credit in respect of garden services, interior decorator services and renting of immovable property services of branch offices. The impugned order to the extent of confirming the demand on these services
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