Cenvat credit on mixed invoices depends on bifurcation between eligible repair services and ineligible civil construction services.

Cenvat credit after 01.04.2011 is available for repair and maintenance services used in relation to modernisation, renovation or repairs of a factory, but not for the service portion of works contract or civil construction used for construction of a building, civil structure or part thereof. Where invoices combine eligible and ineligible services under the same supplier, the credit entitlement must be determined only after bifurcation of the mixed items. The record was considered sufficient for such segregation, and fresh quantification was directed on that basis, with credit confined to repair and maintenance services and denied for civil construction and works contract services.

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Issues: Whether cenvat credit was admissible where the invoices reflected a mix of repair and maintenance services and civil construction or works contract services, and whether the demand required bifurcation between eligible and ineligible services.

Analysis: The definition of input service after 01.04.2011 includes services used in relation to modernisation, renovation or repairs of a factory, while excluding the service portion in works contract and construction services used for construction of a building, civil structure or part thereof. The invoices showed multiple kinds of work under the same service providers, and not all the items were of the same character. Repair and maintenance services could qualify as input services, whereas civil construction and works contract services for construction could not. The record was sufficient to separate the eligible and ineligible portions, and the demand could be quantified only after such segregation.

Conclusion: The matter was remanded for bifurcation of the invoices and fresh quantification of credit eligibility, with credit confined to repair and maintenance services and denied for civil construction and works contract services.

Ratio Decidendi: Where invoices contain both eligible repair and maintenance services and ineligible civil construction or works contract services, cenvat credit can be granted only after bifurcation of the two categories.

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