2024 (5) TMI 195

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....ces were utilized when the Appellant was setting up their plant for manufacturing of finished products which started with effect from September 2015. The Department issued Show Cause Notice on the ground that with effect from 01/04/2011 Rule 2 (l) of CCR, 2004 was amended and the word "setting up" was removed because of which Cenvat Credit cannot be taken for the services used towards setting up of the factories. After due process, the demand of Rs. 30,50,637/- was confirmed by the lower authorities. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Counsel appearing on behalf of the Appellant submits that these are essential services utilized by the Appellant when they were in the process of starting their manufacturin....

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....refore, the Appellant has in no way indulged in any suppression. The Department was aware that the Appellant were regularly taking the Cenvat Credit for various inputs though they were yet to commence the manufacturing activities as could be easily seen from the ER-1 Returns. Therefore, He submits that in the absence of suppression on their part, the Department was in error in invoking the extended period. Accordingly, he submits that the confirmed demand may be set aside on account of limitation also. 4. The Learned AR reiterates the finding of the lower authorities. 5. Heard both sides and perused the Appeal papers, documentary evidence placed before me and the cited case laws. 6. I find that there is no dispute that the Appellant is m....

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....pril, 2011 to specifically exclude input services in forms of works contract or construction services used in relation to building or civil structure or part thereof. It also excludes similar services used for laying of foundation or making of structure for support of capital goods. Thus, the intention of legislature was to restrict input tax credits on above services, which are used during factory set up and hence the term "setting up" was removed from the earlier definition having specific exclusion clause in the new definition. [ Emphasis supplied ] 8. Hyderabad Bench in the case of Pepsico India Holdings (Pvt.) Ltd. cited supra has held as under:- 22. All four of the above qualify as input service as per Rule 2(l)(ii) as applicab....