Service tax paid on maintenance of garden eligible for input service credit

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CESTAT, BANGALORE BENCH

BASF India Ltd.

v.

Commissioner of Central Excise, Mangalore

FINAL ORDER NO. 70 of 2012

APPEAL NO. ST/560 of 2008

FEBRUARY 3, 2012

 

Landscaping of factory or garden certainly would fall within the concept of modernization, renovation, repair, etc. of the office premises. At any rate, the credit rating of an industry is depended upon how the factory is maintained inside and outside the premises. The Environmental law expects the employer to keep the factory without contravening any of those laws. That apart, now the concept of corporate social responsibility is also relevant. It is to discharge a statutory obligation, when the employer spends money to maintain their factory premises in an eco-friendly, manner, certainly, the tax paid on such services would form part of the costs of the final products. In those circumstances, the Tribunal was right in holding that the service tax paid in all these cases would fall within the input services and the assessee is entitled to the benefit thereof.