2021 (11) TMI 1127

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.... Taxpayer Unit. The appellant is also registered as a recipient service for payment of service tax under Reverse Charge Mechanism. During the course of audit of records for the disputed period, the department had observed that the CENVAT credit availed by the appellant on setting up of the business premise should not be considered as input service after the period 1.4.2011. It has specifically been contended by the department that vide Notification No.3/2011 - C Ex. (N.T) dated 1.3.2011 (effective from 1.4.2011), the definition of 'input service' has been amended by deleting the term 'setting up' from the inclusive portion contained in Rule 2(l) of the CENVAT Credit Rules, 2004. Accordingly, it was concluded by the audit wing that the asses....

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....dings Pvt. Ltd. Vs. Commissioner of Central Tax, Tirupati: 2021 (7) TMI 1094 (CESTAT-Hyderabad) and Kellogs India Pvt. Ltd. Vs. Commissioner of Central Tax, Tirupati GAST: 2020 (7) TMI 414(CESTAT-Hyderabad). 3. On the other hand, Shri Rama Holla, learned AR for the Revenue reiterated the findings recorded in the impugned order and further submitted that since the phrase 'setting up' was specifically deleted in the inclusive part of the definition of input service with effect from 1.4.2011, the appellant should not be eligible for the benefit of CENVAT credit and accordingly, there is no infirmity in the impugned order insofar as it has confirmed the adjudged demands on the appellant. 4. Heard both sides and examined the case records. 5. ....

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....d services were ultimately meant for accomplishing the objective of providing the output service, it cannot be said that since, the phrase 'setting up' was specifically excluded in the inclusive part of definition of input service, the benefit of CENVAT credit should not be available. Even though, such phrase was deleted in the inclusive part of the definition of input service with effect from 1.4.2011, but the main part of such definition clause has considered within its ambit such phrase as input service for the purpose of availment of CENVAT credit of service tax paid on the disputed services. Thus, we are of the considered view that denial of CENVAT benefit on the disputed services cannot be sustained. We find that on an identical situa....