TaxTMI 
TaxTMI 
2023 (8) TMI 1317
X X X X Extracts X X X X
X X X X Extracts X X X X
....redit of Rs. 2,10,808/- under Rule 14 of the Cenvat Credit Rules, 2004 was denied, interest was demanded and penalty equal to the Cenvat credit was imposed on the appellant. 2. The brief facts are that consequent to audit of the books of accounts of the appellant, it was noticed that they had availed in credit of service tax on ineligible input services such as construction of civil structures for newly setup of Steel Melting of Continuous Castings Machine (SMS), services of Hydra for erection of chimney, erection and commissioning, enhancement of cash credit limit for new SMS, bank service charges for SMS, membership and subscription fees service for design and engineering for setup of SMS making support for capital goods etc., amountin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed that after the amendment to the definition of input service, a clarification was issued by the Board vide Circular No. 943/4/2011-CX dated 29.04.2011 wherein it was clarified that the credit of service tax paid on construction services as an input service used in modernization, renovation or repair are eligible to credit. Thus, a harmonious reading of the inclusive part of the definition and the exclusion clause mentioned at clause (a) relating to construction service of the definition of in-service, it is clear that the construction service relating to modernization, renovation and repair of the factory continued to be within the meaning of the service and is eligible for credit. In this context the counsel relied on the following decis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the impugned order may be set-aside. 4. The learned Authorised Representative submitted that there is a specific exclusion for construction services from the input service definition which makes it very clear that the appellant were not eligible for such service. He reiterated the findings of the impugned order and prayed that the impugned order may be upheld. 5. I have heard the learned Counsel and the learned Authorised Representative. The short issue involved for determination in the present case is whether the appellants are eligible to the credit of service tax paid on construction and erection services in their factory. It is the contention of the Department that after the amendment to the definition of the input service, all ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emoval, 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 outward transportation up to the place of removal; but excludes, - (A) service portion in the execution of a works contract and construction services including service listed under clause (b....