Cenvat Credit by Service Recepient in Works Contract Service

[Mehul Pandya]

Sir,

We are partnership firm providing storage and warehouse service. At the time of construction of warehouse we have paid service tax to contractor under works contract service ( Not under partial reverse charge) for the construction of ware house. We are confused or not clear that can we eligible to avail cenvat credit of the same ?? Is there any notification or circular in supporting of the same.

[PAWAN KUMAR]

Dear Sir,

As per my view, as per rules 2(l) of Cenvat Credit Rules 2004, service portion in the execution of a works contract used for civil construction in not eligible input service, hence not claimable as cenvat.

[MUKUND THAKKAR]

Agree with above view.

AI Summary

Cenvat credit on works contract service: service portion for civil construction not allowable as input service under rules.
The service portion of a works contract used for civil construction does not qualify as an input service under Rule 2(l) of the Cenvat Credit Rules, 2004 and therefore is not claimable as Cenvat credit by the service recipient.