TaxTMI 
TaxTMI 
2022 (1) TMI 59
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....ndarp 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) -CMC Limited. (h) 2011 (24) S.T.R. 572 (CESTAT DEL.) - Medicaps Limited. (i) 2013 (291) E.LT. 377 (CESTAT-KOL)- ITC Limited (j) 2011 (22) S.T.R. 299 (CESTAT-DEL) - Pushp Enterprises (k) 2013 (32) S.T.R. 383 (CESTAT AHD)- Plastichemix Industries (l) 2015 (330) E.L.T. 565 (CESTAT-BANG)- VST Industries (m) 2016 (43) S.T.R. 347 (KAR-HC) - Sanmar Speciality Chemicals Limited (n) 2017 (49) S.T.R. 84 (CESTAT - Hyd) - Sri Sai Sindhu Industries Limited (o) 2017 (347) E.LT. 112 (CESTAT BANG) - Cranes & Structural Engineers 3. Shri G. Kirupanandan, learned Superintendent (AR) appearing for the Revenue submits that after 01.04.2011, construction service was excluded from the definition of 'Input Service' therefore, the appellant is n....
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.... and maintenance is still continue to be existed in the inclusion clause of definition, credit shall be allowed. This Tribunal has considered the very similar issue and also related to the amended definition of Input Service effective from 01.04.2011 in the case of lon Exchange (I) Limited - 2018 (12) G.S.T.L. 302 (CESTAT - AHD) wherein the Tribunal has passed the following order :- "2. The brief facts of the case are that the appellants are engaged in the manufacture of excisable goods falling under Chapter 39 of CETA, 1985 and availed Cenvat credit of Service Tax paid on 'Construction Service' (modernization, 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 ....
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....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 within the ambit of said definition. Consequently, 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 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, activiti....
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....beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee; Explanation. - 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 as an 'input service' used in modernization, renovation or repair, it has been clarified that th....