Use of Manpower Supply Services and Anti termite / Pesticide Treatment Services in Construction Activities: CESTAT Upholds Denial of Cenvat Credit against Pepsico

The CESTAT upheld the denial of Cenvat credit to PepsiCo concerning the use of manpower supply services and anti-termite pesticide treatment services in construction activities. PepsiCo had claimed the credit on these services, but the tribunal ruled that these services were not directly related to the manufacturing process. The ruling clarified that Cenvat credit cannot be claimed for services used in construction, as they are not part of the taxable goods or services. This decision highlights the limitations on claiming Cenvat credit, stressing that only services directly related to the manufacture of goods are eligible for credit under the Cenvat scheme.