2013 (7) TMI 752

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....t: Shri R.K. Verma, AR JUDGEMENT Per Ms. Archana Wadhwa: In this case, the Applicant had availed credit on service tax paid on construction services for constructing a coal shed in their factory for manufacturing sponge iron. The learned Counsel states that definition of inputs service specifically covers service used in relation to setting up and repair of factory, as may be seen in Rule....

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....d in Cenvat Credit Rules, 2004. When the definition specifically includes services relating to setting up of factory, credit on such services cannot be denied prima facie based on the argument that factory is an immovable property. The argument that a shed for storing inputs has no nexus with manufacture of final products is also unacceptable. 4. It is seen that the definition of inputs service....

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....and is necessary to run factory and as such, the Service Tax paid on the services utilized for construction of compound wall is admissible as Cenvat credit. Applying the ratio of the above decision to the fact of the present case, I hold that inasmuch as coal shed constructed in the factory premises for storing of the coal is a necessary construction, it has to be held that the same is a service r....