2023 (6) TMI 700

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....t service i.e. Commercial and Industrial Construction Services on which the appellant have discharged the service tax. 2. Shri Tarun Chatterjee learned Counsel along with Ms. Binita Pandy, learned Company Secretary appeared for the appellant. Shri Tarun Chatterjee submits that the Cenvat credit was denied on the ground that same falls under exclusion category as brought in the Rule vide Notification No. 16/2009-CE (NT) dated 07.07.2009. He submits that this explanation to definition of input service by the aforesaid notification is in respect of manufacturer and not for the service provider therefore, the interpretation of the department on amendment in explanation-2 by Notification No. 16/2009-CE (NT) is absolutely erroneous and on this....

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.... the definition and explanation which is reproduced below:- "Input" means - (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high spe....

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....on 2 - Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer; "but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods. From the plain reading of the explanation-2 it can be seen that explanation-2 is exclusively applicable to manufacturer and not to service provider. Therefore, the entire case based on the amendment in explanation-2 cannot sustain. Further, as regards the admissible inputs for the purpose of Cenvat credit, it falls under clause-(ii) of the definition ....