Input service credit

[Asked by Guest]

Dear Sir,

If we avail a work contract service for installation of machine and we paid service tax is it eligible for cenvat credit under input service ?

AI Summary

Input service credit: eligibility for works-contract construction supporting machinery hinges on whether the service is an excluded construction portion.
Admissibility of service tax credit for a works contract to build supports for machinery turns on whether the service is an excluded construction/works-contract portion used for laying foundations or making structures for support of capital goods; if so, the input service definition bars credit. Competing submissions argue that integral support works enabling a capital machine to function may be ancillary and creditable, while the statutory exclusion and related case law preclude credit when the service constitutes construction or foundation work.