2019 (5) TMI 1138

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.... is alleged that they have wrongly availed CENVAT Credit amounting to Rs. 9,89,340/- on various input services used in 'setting up' of their office premises since fall outside the scope of definition of 'input service'. Accordingly, it is proposed to recover the said credit with interest and penalty by issuance of show cause notice dt.28.10.2016. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3. The learned Advocate Ms.Meetika Baghel for the Appellant has submitted that by an agreement with that of Indiabulls of Real Estate Co. Pvt. Ltd, dt.14.12.2012, they have taken office premises on lease and licence basis for a period of 16 months, effective from 14.04.2013. The Appellant, thereafter, ....

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....s). 5. I have carefully considered the submissions advanced by both sides. The limited issue involved in the present appeal for consideration is whether the service tax paid on services received by the Appellant and used in the new office taken on Leave and License basis , is eligible to CENVAT Credit. On going through the invoices enclosed with the appeal paper book and the relevant work order, I find that the Appellant, after taking possession of the office premises against leave and licence agreement with India Bulls Real Estate Co. Pvt. Ltd, carried out certain civil construction/repair work. Also, they have carried out renovation of the premises as advised by the architecture so as to make optimum use of the space and other necessari....

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....y, the Service Tax paid on 'construction service' involving modernization, renovation and repair work within the factory is eligible to credit. Before scrutiny of the rival contentions, the relevant old and amended Rule 2(l) of the Cenvat Credit Rules, 2004 are reproduced as below : Prior to 1-4-2011 (l) "input service" means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output ....

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....listed under clause (b) of Section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or (BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by - (a) a manufacturer of a motor ....