Tribunal overturns denial of Cenvat credit for shed construction services, exclusion clause not applicable.

The Tribunal set aside the order denying Cenvat credit on Erection, Commissioning, and Installation services for constructing a new shed, as these services did not fall under the exclusion clause related to construction purposes. The appeal was allowed, overturning the denial of credit by both original and appellate authorities.

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Issues:
Denial of Cenvat credit on Erection, Commissioning, and Installation services used for construction of a new shed in factory premises.

Analysis:
The appeal was filed against the denial of Cenvat credit on services utilized for constructing a new shed. The appellant argued that the services obtained were for Erection, Commissioning, and Installation, not falling under the exclusion clause of the definition of Input Service. The appellant contended that the exclusion clause did not cover the specific services they received, hence the credit should not be denied. On the other hand, the AR for the respondent supported the denial of credit, stating that the services were used for construction purposes. The exclusion clause 'A' of the definition of Input Service was crucial in this case, as it pertained to services used for construction or execution of works contract of a building or civil structure, or laying of foundation for support of capital goods. Both the original and appellate authorities relied on this exclusion clause to deny the credit. However, the Tribunal found that the services received by the appellant, namely Erection, Commissioning, and Installation services, did not fall under the exclusion clause. Therefore, the impugned order denying the credit was set aside, and the appeal was allowed.

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