Cenvat credit on factory building construction and insurance services allowed as input services linked to manufacture.

Cenvat credit on service tax paid for construction services used to expand a factory building, and on insurance premium for the building, was treated as admissible because the services were connected with the factory building used in manufacture. In the absence of any factual dispute from the Revenue, the services fell within the scope of input service under Rule 2(l) of the Cenvat Credit Rules, 2004. The credit was therefore allowed.

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Issues: Whether Cenvat credit was admissible on service tax paid for construction services used for expansion of the factory building and on insurance premium paid for insurance of the building under Rule 2(l) of the Cenvat Credit Rules, 2004.

Analysis: The claimed services were connected with the factory building used in manufacture. In the absence of any factual dispute from the Revenue, the services fell within the ambit of input service under Rule 2(l) of the Cenvat Credit Rules, 2004.

Conclusion: The credit was held admissible and the appeal was allowed.

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