Cenvat credit on construction service allowed where service was availed and paid before the exclusion amendment took effect.

Cenvat credit on construction service remained admissible where the service had been commenced, invoiced, paid for, and substantially performed before 1.4.2011, when the amendment excluding construction service from eligible input service took effect. The record showed pre-amendment invoice, payment, and architect certification, establishing that the service was already availed before the exclusion came into force. The fact that credit was entered in the books after the amendment date did not by itself justify denial. The amendment was treated as not operating retrospectively against services already received and paid for, so the denial of credit was unsustainable.

---

---

Issues: Whether cenvat credit on construction service was admissible where the service, invoice, payment, and substantial performance occurred before the amendment excluding construction service from eligible input service came into force, even though credit was taken after the amendment date.

Analysis: The exclusion introduced with effect from 1.4.2011 was held inapplicable because the construction activity had commenced and the service had been provided before that date. The record showed an invoice dated 25.03.2011, payment on 28.03.2011, and architect certification dated 26.03.2011, establishing that the service was availed and paid for prior to the amendment. The mere fact that credit was recorded on 30.04.2011 did not justify denial, and the amendment was treated as having no retrospective effect on already availed services.

Conclusion: Credit on the construction service was admissible and the denial of credit was unsustainable.

---