Cenvat credit on drinking water testing (Service Tax)

This query is : Open

Author : Anonymous

( Author )
29 May 2012

Dear Sir,

Please clarify:

Can we avail servicetax credit on the amount charged for testing the drinking water supplied in the factory premises.

Please do clarify ,,,

Thank you.

PUNEET GOYAL

( Expert )
29 May 2012

According to me yes. As per rule 2(l) of CENVAT Credit Rules, 2004 input service, inter alia, means any service

(ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,

and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises,

I think we can argue that it is used in modernization etc of factory.

Author : Anonymous

( Author )
15 June 2012

is it valid if we argue that it is a "legal requirments of the comapany".

Plz do clarify,

Thank you