2019 (2) TMI 404 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – pest control services – site visit fee for national award bill (management consultancy) service – Held that:- The product stored by the appellant being sugar and is being used as input for aerated beverages which are used for human consumption, it is essential that the premises are to be kept pest free – the pest control services availed by the appellant are input services – credit allowed.
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Fees paid by the appellant for site visit by officials of CII – Held that:- It is seen from the invoice that the site visit has been made in regard to National Award for Food Safety, 2014. Though in the invoices it stated that these are management consultancy service, it is neither the case of the appellant that they had requested for any management consultancy and the visit is indeed in respect of assessing the appellant with regard to giving an award. This can never be considered as input services – credit cannot be
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llant for controlling pest in the said godown have been disallowed. He argued that it is highly necessary to keep the godown pest-free as the sugar is used as input for finished products which are used for human consumption. 2.2 With regard to site visit for national award bill, he submitted that the appellant s factory is a member of Confederation of Indian Industry (CII). The authorities below have allowed the credit on club membership fees whereas they have disallowed in respect of management consultancy service provided by CII. He adverted to the invoice issued in this regard and argued that the officials of CII had conducted site visit in regard to National Award For Food Safety 2014. This is actually in the nature of management consultancy services as the officials have given advice to appellant s factory as to the upkeep and running of the factory and also in regard to quality compliance norms. The visit having been made for giving advice in the nature of management consultancy,
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rvices have been availed by the appellant to make these premises pest free. The product stored by the appellant being sugar and is being used as input for aerated beverages which are used for human consumption, it is essential that the premises are to be kept pest free. For this reason, I am of the view that the pest control services availed by the appellant are input services and therefore the same are eligible for credit. The disallowance of credit is unjustified and requires to be set aside, which I hereby do. 5.2 The second issue is with regard to fees paid by the appellant for site visit by officials of CII. It is seen from the invoice that the site visit has been made in regard to National Award for Food Safety, 2014. Though in the invoices it stated that these are management consultancy service, it is neither the case of the appellant that they had requested for any management consultancy and the visit is indeed in respect of assessing the appellant with regard to giving an awar
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