CENVAT credit on construction service whether eligible

[Yatin Bhopi]

Dear experts,

We are manufacturer or organic chemicals. We are having effluent treatment plan (ETP) in the factory which is required for doing necessary treatment (statutory requirement under MPCB) on waste water before removing from the factory. Recently we have re-construct the effluent treatment tank ( civil structure) to increase the capacity of the tank. Now we have received the bill from the service provider for construction of tank (works contract)

My query is:

After going through the definition of input services (exclusion clause in the definition where construction service use for any civil structure is excluded from the definition) Is CENVAT credit available to us?

AI Summary

CENVAT Credit Eligibility Dispute: Construction Services for Effluent Treatment Tanks in Manufacturing Process Under Scrutiny A manufacturer of organic chemicals inquired about the eligibility of CENVAT credit for construction services used to reconstruct an effluent treatment tank, a statutory requirement for waste water treatment. The query arose due to an exclusion clause in the definition of input services related to civil structures. One respondent stated that CENVAT credit is not available for work contracts, while another argued that CENVAT credit is eligible since the effluent treatment plant is an essential part of the manufacturing process.