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.

AI Summary

Firm Ineligible for Cenvat Credit on Works Contract Service for Warehouse Construction Under Rule 2(l) of Cenvat Credit Rules 2004. A partnership firm providing storage and warehouse services inquired about the eligibility to claim Cenvat credit for service tax paid to a contractor for warehouse construction under a works contract service. The firm sought clarification on whether any notification or circular supports their claim. Respondents advised that, according to Rule 2(l) of the Cenvat Credit Rules 2004, the service portion in the execution of a works contract for civil construction is not considered an eligible input service, and thus, Cenvat credit cannot be claimed. Both respondents agreed on this interpretation.