2018 (2) TMI 545

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....pair service) in the factory premises, during the relevant period as mentioned in the respective appeals. Alleging that after amendment to definition of 'Input Service' with effect from 1.4.2011 'construction service' being placed under the exclusion clause, therefore, credit availed by the appellant on the said service is irregular. consequently, demand notices were issued for recovery of inadmissible credit with interest and penalty. On adjudication, demands were confirmed with interest and penalty. Aggrieved by the said order, the appellants filed respective appeals before the Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeal. 3. The Ld Advocates Shri H. Ganguly and Shri Devang Joshi for the appellant....

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....ce Tax paid on 'construction service' relating to modernization, renovation or repair of their factory. 7. It is the contention of the Revenue that after amendment to the definition of 'input service' all 'construction service' undertaken within the factory premises fall outside the scope of the said definition, accordingly, Service Tax paid on 'construction service' is not admissible to credit. The appellant, on the other hand, submits that on deletion of word 'setting up' from the scope of said definition, new construction undertaken, would no longer be eligible, however, the construction relating to 'modernization, renovation or repair' of the existing plant and machinery inside the factory premises is definitely continued to fall withi....

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....ucts and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; [but excludes], - [(A) service portion in the execution of a works contract and construction ser....

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....d provisions makes it clear that service utilized in relation to modernization, renovation and repair of the factory are definitely fall within the meaning of "input service" even though construction of a building or civil structure or part thereof has been placed under exclusion clause of the said definition of "input service". After amendment to the definition of the "input service", a clarification issued by the Board vide Circular No 943/4/2011-CX dt 29.4.2011 dt 29.4.2011 where-under answering to the questions raised on the eligibility of credit of service tax paid on construction service as an "input service" used in modernization, renovation or repair, it has been clarified that the said services being provided in the inclusive part ....