CENVAT credit on mine support structures was held admissible because the exclusion for civil structures was read narrowly.

CENVAT credit on services used for ventilation stopping and isolation stopping areas inside mines was held admissible where those structures were mandatory for mine operations. The exclusion for "civil structure or part thereof" in the CENVAT Credit Rules was applied narrowly, and mine support structures integral to operational requirements were treated as not bearing the character of civil structures. On that basis, denial of credit on the disputed input services was not sustainable.

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Issues: Whether CENVAT credit on services used for ventilation stopping area and isolation stopping area within the mines was inadmissible as relating to construction of a civil structure or part thereof under Rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis: The disputed credit related to structures maintained within the mining area for ventilation and isolation, which were stated to be mandatory for mine operations. The expression "civil structure" in the exclusion clause was applied narrowly, and the same reasoning earlier adopted for support structures in mines was followed. On that basis, the impugned structures were treated as not answering to the character of a civil structure or part thereof.

Conclusion: The denial of CENVAT credit on the disputed amount was not sustainable and the credit was admissible.

Ratio Decidendi: Structures within a mine that are integral to operational requirements and do not bear the character of a civil structure fall outside the exclusion in Rule 2(l) of the CENVAT Credit Rules, 2004.

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