TaxTMI 
TaxTMI 
2017 (6) TMI 506
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....el plant for providing the service of erection, commissioning and installation of coke oven battery at the customer's site. The contract was a turnkey contract and included undertaking of testing and engineering, civil engineering work, dismantling of plant, fabrication and supply of steel structures, manufacture and supply of plant and equipment, in addition to erection, testing and commissioning of the facilities. In the process of carrying out the above work, the appellant used certain inputs such as cement and structural steel items such as angles, channels, TMT bars, etc. After provision of services, the appellants discharged their service tax liability on the entire contract value including supply as well as services. It is note worth....
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....tion for supply of capital goods. Further, he submits that the restriction placed is only in respect of use of such items in the factory of the manufacturer and is not applicable to the service provider as has been held by the Tribunal in the case of Adani Port & SEZ Ltd. Vs. CST Ahmedabad, 2016 (42) STR 1010 (Tri-Ahmd). ii) He emphasized that the appellant has not availed the benefit of notification no.1/2006 or 12/2003-ST providing abatements. Consequently, the appellant was entitled to avail the Cenvat Credit on cement and other structural steel items which are allowable as inputs. He also cited the CBEC circular no.80/10/2004-ST dated 17.09.2004 in which the CBEC has clarified in the context of construction services that items such as ....
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....input" in terms of the Rule 2(k) of the Cenvat Credit Rules 2004: 2(k) "input" means-(prior to 07.07.2009) (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil,....
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.... in the factory of the manufacturer; but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods; 10. By referring to the definition of inputs as above, it is evident that Rule 2(k) (ii) is relevant for any service provider providing any output services. It is also without doubt that Explanation (2) is applicable only to the factory of manufacturer. In the present case the appellant has functioned as service provider to execute the turnkey contract for erection, commission and installation of coke oven battery. Since he did not function ....