Service tax on construction bill of building

[CABIJENDERKUMAR BANSAL]

Our Company is mfg co. We are setting up a new unit at Tronica City . We are claiming Service tax on construction bill of building for payment of excise duty. Our assessing officer deny it. He told you can take service tax credit on renovation of factory , not on construction of factory. Please tell with supporting document. Thanks in advance. Ca. Bijender Bansal

AI Summary

Company Challenges Denial of Service Tax Credit on Factory Construction under Rule 2(l) of Cenvat Credit Rules, 2004. A manufacturing company is setting up a new unit and seeks to claim service tax credit on the construction bill for excise duty payment. The assessing officer denied the claim, stating that service tax credit is applicable only for factory renovation, not construction. A respondent advised referencing rule 2(l) of the Cenvat Credit Rules, 2004, which permits service tax credit on input services related to setting up a factory, arguing that constructing a factory qualifies as such.