Cenvat credit on factory erection services requires proper input service analysis; matter remanded for fresh consideration.

Cenvat credit on service tax paid for erection or fabrication of factory premises cannot be denied merely because the supporting documents are treated as improper, without first examining whether the service qualifies as an input service under the Cenvat Credit Rules, 2004. The order-in-original was found to have considered this issue without proper perspective, so the matter was remanded for de novo consideration with all questions kept open and with observance of natural justice. The tribunal expressed no final view on the merits of the credit claim, leaving entitlement to be reconsidered by the adjudicating authority.

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Issues: Whether Cenvat credit of service tax paid on services used for erection or fabrication of factory premises could be denied on the ground of improper documents and whether the matter required reconsideration.

Analysis: The assessee had entered into a contract for erection or fabrication of factory premises, the contractor had raised running bills, and service tax had been discharged on the contract. The question was whether, if the service qualified as input service under the Cenvat Credit Rules, 2004, credit could be denied merely because the adjudicating authority treated the supporting documents as improper. The order-in-original did not examine this aspect in the proper perspective. The matter therefore required fresh consideration, with all issues kept open, and with observance of the principles of natural justice.

Conclusion: The issue was remanded to the adjudicating authority for de novo consideration; no final opinion was expressed on the merits of the credit claim.

Final Conclusion: The appeal resulted in a remand after the pre-deposit requirement was waived, leaving the substantive entitlement to credit open for reconsideration.

Ratio Decidendi: Where service tax has been paid on a service used for factory erection or fabrication, credit cannot be rejected without properly examining whether the service falls within the definition of input service and without affording natural justice.

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