Sir,
We are a manufacturing company we have taken a service for our machine installation fabrication and erections service.
Now my question is that can we avail Cenvat credit on Fabrication,Erection and installation service.
Please also note this is note a Works contract service.
Rgds
Yateen vyas
Manufacturing Company Eligible for Cenvat Credit on Machine Installation Services; Modernization Clause Applies, Not Works Contract. A manufacturing company inquired about the eligibility to avail Cenvat credit on services related to machine installation, fabrication, and erection, clarifying that it is not a works contract service. A consultant responded affirming eligibility, stating that these services qualify as input services since they are used in manufacturing excisable goods. Another expert confirmed that even if machines are not directly used in manufacturing, the services still qualify as input services under the modernization clause. A separate query involved a dispute where a company providing fabrication work in a cement factory argued against service tax applicability, claiming it as manufacturing activity. (AI Summary)