2018 (6) TMI 42

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....ch 2013. Denied service tax credit of Rs. 11,030/- works contract services as the services were received after 01.04.2011, as per invoice No. 35, dated 10.08.2011, as they were used for setting up of factory after 01.04.2011, which is after amendment of CENVAT Credit Rules, 2004. Period: June 2011 to March 2012 Availed credit of input service tax credit of Rs. 1,42,667/- on GTA services for clearances towards outward freight from place of removal to customer's premises. Sample invoices perused by the Commissioner (A) have not indicated that the applicant was under obligation to deliver the goods at customers place. Period: September 2010 to April 2011 Availed credit of Rs. 34,613/- on washer blanks, foundation bolts and nuts:....

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....judicating Authority. 3. Learned Consultant appearing for the appellant draws my attention to the records of the case. It is his submission that the services rendered in respect of item No. 1 herein above were received prior to 01.04.2011 and the same were used for setting up of factory which is ineligible to avail CENVAT credit for the service tax paid on GTA, this service tax is eligible for capital goods; service tax availed on capital goods, it is his submission that these were for the support structure for the machinery and includes CENVAT credit availed on dust collection bags supplied by M/s Genuine Filters & Fabrics, which are used on the machineries for collection of the dust for environmental purposes; as regards the CENVAT cre....

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....sideration of submissions made, I find the CENVAT credit availed by the appellant in respect of item number 1. herein above is correctly denied as the services were of the works contract services for structural construction of building which has been correctly argued by the Learned Departmental Representative, post 01.04.2011 the services were excluded from the purview of input services in terms of Rule 2(l) (ii) of CENVAT Credit Rules, to that extent, I agree with the impugned order and reject the appeal filed by the appellant on this point. 6. As regards the CENVAT credit availed of the service tax paid on GTA services, I find that these services are for the period June, 2011 to March, 2012 i.e. post 01.04.2008 and Learned Departmental....

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....d during the period in question and appellant shifted the activity to another factory. The Revenue Authorities seek to deny the CENVAT credit of the service tax paid on these services, on the ground that appellant was not manufacturing any goods in the premises the services are not utilized for manufacturing of the goods. I find that both the lower authorities have misconstrued the issue. The definition of the inputs and input services indicates that there should be directly or indirectly, in or in relation to the manufacture of the final products. In the case in hand, appellants were manufacturing cement at their Bollaram unit; even though production at Bollaram factory was suspended they had continued to maintain the lease premises with t....