CENVAT credit on pre-2011 construction-related input services remained admissible under the inclusive definition of input service.

For the pre-01.04.2011 regime, input services used in relation to setting up or constructing premises for providing taxable output services fell within the inclusive definition of "input service" under Rule 2(1) of the Cenvat Credit Rules, 2004. Credit on services such as architects, banking, business support, chartered accountant, commercial or industrial construction, design, insurance, management consultancy and real estate agent services was therefore admissible. The denial of CENVAT credit was unsustainable, especially since the issue had already been covered in the appellant's own earlier case and affirmed in departmental challenge before the High Court.

---

---

Issues: Whether CENVAT credit on input services used in relation to construction and provision of taxable services such as renting of immovable property was admissible for the relevant period.

Analysis: The dispute was confined to eligibility of credit on services such as architects, banking, business support, chartered accountant, commercial or industrial construction, design, insurance, management consultancy and real estate agent services. The relevant period preceded the 01.04.2011 amendment, and the credit claim had to be tested under Rule 2(1) of the Cenvat Credit Rules, 2004, which contained an inclusive definition covering services used in relation to setting up the premises of the provider of output service. The issue had already been decided in the appellant's own case for an earlier period, where credit on similar services was allowed. That view had also been affirmed in departmental challenge by the High Court, and the Tribunal followed the same line of authority.

Conclusion: CENVAT credit on the disputed input services was admissible and the denial of credit was unsustainable.

Final Conclusion: The appellant was entitled to the credit claimed on the impugned input services and the demand, with consequential penalties and related reliefs, could not be sustained.

Ratio Decidendi: For the pre-01.04.2011 regime, services used in relation to setting up or construction of premises used for providing taxable output services fall within the scope of input service under Rule 2(1) of the Cenvat Credit Rules, 2004, and credit cannot be denied when the issue is already covered by binding precedent.

---