2016 (10) TMI 648

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....st the same order. 2.  The dispute in all the present proceedings are with reference to the appellants eligibility for cenvat credit of service tax paid on four types of activities. 3.  We have heard both the sides and perused the records. The impugned order denied cenvat credit of Rs. 28,32,73,936/- availed by the appellants under the various categories of input services. Substantial portion of this credit relates to construction service. The appellant submitted that they have undertaken expansion of factory capacity at Manesar, They have also undertaken construction, repair & maintenance of engineering shop/ dye cast shop etc. in their Gurgaon plant. These services were clearly covered under the category of "input services" in....

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....for setting up of the factory. Reference can also be made to the decisions of this Tribunal in the case of Lingong Indian Pvt. Ltd. 2015 (38) STR 96 (Tri. Del.), YKK India P. Ltd. 2013 (30) STR 200 (Tri. Delhi) and Suzuki Motor-cycle 2011 (267) ELT 216 Tri. Delhi. We find considering the above position that the denial of credit on construction service to the appellant is not legally sustainable as the period involved is prior to amendment in Rule 2(l) made on 01.04.2011. 4. The Cenvat Credit was also denied to the appellant on architect service availed by them in connection with project planning, designing, consultancy etc . in connection with expansion of their unit at Manesar and also for renovation and repair of the factory. We find app....

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....aterial period. However, such credit shall not be available in respect of medical claim for family members as held by the tribunal in the case of Sundaram Brake Linings reported in 2014 (34) STR 583 (Tri. Chennai) where denial of such credit is upheld. 6.  Cenvat Credit availed under the category of club or association service in respect to membership taken by directors has been denied by the original authority. We find that the park extended/charged for the directors is part of their employment benefit as such has no direct nexus with the manufacturing activity of the appellant. Such services are far removed from the activities of the appellants and cannot be considered heaving any nexus to sustain their eligibility. Such employment ....

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....nting of immovable property service'. The appellant/assessee has provided boarding/lodging to the experts from parent company in Japan during their stay here for supervision of installation of machinery and other projects. Revenue contested the eligibility of such service tax credits on the ground that the same is not covered by the definition for l input service'. We find that the original authority allowed the credits holding that these expenses are covered under administrative over-head expenses which form part of the cost of excisable goods. Even otherwise, we note that, as admitted in appeal itself, these experts were in India to ensure smooth and effective running of the appellant/assesses operations. Apparently, the contribut....