TaxTMI 
TaxTMI 
2021 (6) TMI 977
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....IR2016-21(C.Ex) observed that the appellant during the year 2015-2016 have availed cenvat credit of service tax on banking and finance service. Rs. 25,14,532/-, is attributable to setting up of new Pelletizing Plant. It has been observed that this service was not related to the manufacture of their finished goods, therefore, it does not qualify as input service as defined under Rule 2 (l) of CCR. In response to the reply to the Department, the appellant submitted their letter dated 4.4.2017 stating that during the month of March, 2016, they have availed total input service tax credit of Rs. 33,65,288/-, out of which, Rs. 25,14,532/- (Rs. 10,10,600/- + Rs. 9,88,428/- + 5,15,504/-) has been taken for their new Pelletizing Plant (Term loan) an....
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....cture for support of capital goods, has been kept in exclusion clause. Further, observed that it means the amendment in the definition of "input service" by deleting the words "setting up", the Government intends to avoid the ambiguity for taking cenvat credit. In the instant case, on verification of the documents, the Asstt. Commissioner found that the appellant has obtained the term loan from various banks viz. Bank of Baroda, Union Bank, IDBI Bank Ltd., for setting up of Pellet Plant in their existing factory premises during 2015-2016. For sanction of term loan, the appellant have paid service tax on processing fee, lead bank fee, upfront fee, legal fee, appraisal fee and inspection charges and have taken credit of service tax on these s....
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....tions for allowance as input service under Rule 2 (l) are fulfilled. Accordingly, the proposed demand was dropped. 4. Being aggrieved, the Revenue preferred appeal before the Commissioner (Appeals) on the ground that the services used for setting up of factory are not covered under the definition of "input service" in view of the dropping of the word "setting up" w.e.f. 01.04.2011. 5. Ld. Commissioner vide ex parte impugned order-in-appeal observed that in view of the amendment w.e.f. 1.4.2011, in the definition of "input service" , means that service, which has been used in relation to the setting up of factory on or after 1.4.2011, would not be eligible as input service. Hence, he was of the view that services used in relation to se....
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....ervices. Thus, service in dispute qualify under the head 'Banking & Financial Services' Further, urged that "input services" means any service --used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of the final product and clearance of final products up to the place of removal and includes services used in relation to the modernisation, renovation or repairs of a factory premises, etc.....................................................................financing and outward transportation up to the place of removal. Further, there is no express exclusion in the exclusion portion, as contained in Clause (A), (B), (BA), (C). (emphasis Supplied) 8. It is further urged that admittedly, the a....