Appeal Allowed: Construction services inside factory premises qualify for CENVAT credit under 'input service' definition

The Tribunal allowed the appeal, setting aside the Order-in-Appeal by the Commissioner (Appeals) of Central Excise, Vadodara. It held that construction services for repair and maintenance work inside factory premises post 1.4.2011 are admissible for CENVAT credit under the definition of 'input service'. The appellant's contention was supported by relevant invoices and a previous case precedent. The Revenue's argument that such services were excluded post 1.4.2011 was rejected. The decision was made by Dr. D. M. Misra, Hon'ble Member (Judicial) at the Appellate Tribunal CESTAT AHMEDABAD.

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Issues:
- Admissibility of CENVAT credit for service tax paid on repair and maintenance service at factory premises post 1.4.2011.

Analysis:
The appeal in question was filed against an Order-in-Appeal passed by the Commissioner (Appeals) of Central Excise, Vadodara. The core issue revolved around the admissibility of CENVAT credit for service tax paid on repair and maintenance service at the factory premises after 1.4.2011. The appellant contended that the construction service received was for repair and maintenance work inside their factory premises, citing relevant invoices. Reference was made to a previous case where it was held that service tax paid on construction service used in repair and maintenance work is admissible even post 1.4.2011. On the other hand, the Revenue argued that post 1.4.2011, construction services were specifically excluded from the definition of 'input service', making the appellants ineligible for credit on repair and maintenance service at their factory premises.

Upon careful consideration, the Tribunal analyzed the scope of the amended definition of 'input service' under the Cenvat Credit Rules, 2004, and relevant Board Circulars. Referring to the precedent set in a previous case, the Tribunal concluded that construction services related to repair work inside factory premises would still fall within the definition of 'input service'. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law. The decision was dictated and pronounced in the open court by Dr. D. M. Misra, Hon'ble Member (Judicial) at the Appellate Tribunal CESTAT AHMEDABAD.

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