2012 (5) TMI 33

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cause notice was issued for denial of credit on the ground that the services utilized for the construction/erection and installation of Ammonia Storage Tank outside the factory premises, hence are not covered under the definition of input services as provided under CENVAT Credit Rules, 2004. The adjudicating authority in the impugned order held that the impugned services received in respect of storage tank which is immovable property hence or not capital goods, therefore, credit is not admissible. 3. The applicant, after relying upon the definition of 'input service' during the relevant period, submitted that the credit of the service tax paid on input services received even in relation to setting up, modernization, renovation or repairs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....k is not admissible. It is also submitted that storage tank is immovable property hence no excise duty is paid, therefore, the credit is not admissible. The Revenue also submitted that though the cost of the storage tanks is added to the assessable value cleared on payment of duty, that is not the criteria for taking credit in respect of input services which are used in or in relation to the manufacture of inputs. It is also submitted that whether the credit is admissible in respect of service tax paid on the input services inside or outside depends on the nature of the services. Hence the credit is admissible in respect of service tax paid on the service for setting up, modernization, renovation or repairs of a factory and it cannot be sai....