2017 (3) TMI 300

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.... was for construction of factory building in their premises. Commissioner (Appeals) has rejected the claim of the appellants on the ground that the use of input services had no nexus with the manufacture of final product. 3. Ld. Advocate for the appellants points out that the issue of admissibility of input service credit for construction of factory building or manufacturing plant is no longer res integra. He further submits that after the amendment in Cenvat Credit Rules in 2011, the input services for civil construction purpose is expressly excluded from the definition of input service. However for the period prior to 1.4.2011, the issue is covered by the judgment of Hon'ble Punjab & Haryana High Court in the matter of CCE, Delhi-III vs.....

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....in the second part of Rule 2(l) i.e. the inclusive part. The definition of the words "input service" also specifically includes the services used in relation to setting up of a factory. Mr. Amrinder Singh rightly contended that it was not the appellant's case that the services were not used for the setting up of the factory. The doubt in this regard is set at rest by the second part of Section 2(l)(ii) which includes within the ambit of the words input service the setting up of a factory and the premises of the provider of the output service. The inclusive definition, therefore, puts the matter, at least so far as the payment for services rendered by the civil contractor for setting up the factory is concerned, beyond doubt. As the plai....