TaxTMI 
TaxTMI 
2022 (1) TMI 59
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....t Treatment Plant which is nothing but covered under modernization of existing factory. Therefore, the services is covered in the inclusion clause of definition of 'Input Service' provided in Rule 2(l) of Cenvat Credit Rules, 2004. He placed reliance on the following judgments:- (a) 2014 (301) ELT. 46 (KAR-HC) Swarnagiri Wire Insulations Pvt. Limited (b) 2017 (307) E.L.T. 484 (GUJHC) Kandarp Dilipbhai Dholakia (c) 2016 (344) ELT. 923 (CESTAT-Hyd.) - B. Girijapathy Reddy & Co (d) 2018 (12) G.S.T.L. 302 (CESTAT - AHD) - lon Exchange (I) Limited (e) 2018 (12) G.S.T.L. 90 (CESTAT-AHD) - Manakasia Coated Metal & Industries Limited (f) 2016 (45) S.T.R. 92 (CESTAT - Hyd) Mahindra & Mahindra Limited (g) 2017 (51) S.T.R. 17 (CESTAT-Hyd....
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...., whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from 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 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, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal ....
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....tion, renovation and repair service) of the existing plant and machinery in their factory premises, so as to meet USA, FDA guidelines during the period June, 2011 to March, 2012. Alleging that after amendment to definition of 'input service' with effect from 1-4-2011 'construction service', being placed on the exclusion clause, therefore credit availed by the appellant is irregular; consequently, notices were issued to them on 17-9-2012 for recovery of inadmissible credit of Rs. 12,40,205/- with interest and penalty. On adjudication, the demand was reduced to Rs. 9,82,887/- with interest and penalty. Aggrieved by the said order, the appellant filed appeal before the Commissioner (Appeals), who in turn, further reduced the amount to Rs. 8,86....
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....the records. 6. The short issue involved for determination in the present case is : whether the appellants are eligible to credit of Service Tax paid on 'construction service' relating to modernization/renovation 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 words 'setting up' from the scope of said definition, new construction undertaken, would no longer be eligible, however, the construction relating to 'moderni....
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.... providing an output service; or (ii) used by a 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 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 up to 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 o....
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....n. - For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis. 8. A plain reading of the said 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, dated 29-4-2011 whereunder answering to the questions raised on the eligibility of credit of service tax paid on construction service ....