TaxTMI 
TaxTMI 
2025 (10) TMI 1265
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....rom the ST-3 returns filed by the appellant for the period from October, 2010 to March, 2011, it was observed that the appellant has availed the Cenvat Credit of input services amounting to Rs. 2,39,82,982/- in the month of March 2011 without ever providing any output services including that of a 'mandap keeper. It was also observed that major portion of the Cenvat Credit of input service was availed by the appellant on a single day ie. 28.03.2011 in respect of various input services such as consultancy, ducting & insulation, civil work, security, interior work, electrical installation, installation of elevator, fire fighting fittings work uniform design, chiller installation and earth excavation work related to construction of building i.e hotel. The hotel business was otherwise by issuance of first invoice dated 29.03.2011 (the day on which the entire cenvat credit was availed) alleging the said availment as improper and contrary to the provisions of law. A show cause notice bearing No. 13/2015 dated 27.01.2016 was served upon the appellant proposing the reversal of the wrongly utilized cenvat credit of Rs. 2,69,84,580/- along with the proper interest and the proper penalties....
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....n the following decisions along with various other decisions:- • Rathi Special Steels Ltd. vs. CCE, Jaipur-I (2015) 252 ELT 219-CESTAT DELHI • CCE, Goa vs. Kamat Constructions & Resorts Private Limited (2016) 42 STR 450-CESTAT Mumbai • Lemon Tree Hotels Ltd. vs. CCE, Customs & Service Tax, Aurangabad (2018) 364 ELT 1078-CESTAT, Mumbai • CCE, Ahmedabad-II vs. Cadila Healthcare Ltd. (2013) 30 STR 3 (Gujarat) • Alliance Global Services IT India Private Limited vs. Commissioner of C.Ex. & ST-Hyderabad-II (2016) 67 taxmann.com 274;54 GST 274-CESTAT Hyderabad • Tata AIG Life Insurance Co. Ltd. vs. CCE, Mumbai & Thane-II (2015) 37 STR 570-CESTAT, Mumbai • Infinity Infotech Parks Limited vs. Union of India (2015) 55 taxmann.com 367 - Calcutta • GAC Shipping India Private Limited vs. Commissioner of Central Excise & Customs, Cochin (2017) 49 STR 242 - CESTAT, Bangalore 7. While rebutting the said submissions, learned DR, at the outset, has reiterated the findings in order under challenge. It is submitted that there is no nexus between the impugned capital goods/input services used by t....
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.... availing the benefit of exemption specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th March, 1986, published in the Gazette of India vide number G.S.R. 547 (E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final product, on or after the 10th day of September, 2004." Rule 4 thereof prescribes the conditions for allowing cenvat credit which reads as follows:- "(1) The CENVAT Credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service or in the premises of the job worker, in case goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service, as the case may be, (2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service or outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory, or in the premises of the job w....
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.... Rule 3(1) of the Cenvat Credit Rules, 2004, a manufacturer or producer of final product or a provider of taxable service shall be allowed to take credit of the service tax leviable under Section 66. Accordingly, said rules are subject to scheme of the Act and more specifically subject to the charging section 66 of the Finance Act, 1994 as applicable wherein charge of service tax is on services provided or to be provided. For a charge of Service Tax as per Section 66/66B of Finance Act, 1994, following essential ingredients must be present: (a) There should be a service involved. (b) Services should be provided or agreed to be provided. (c) Services should be provided by one person to another person. (d) Tax shall be levied on value of services so provided or to be provided. (e) Collection shall be in the prescribed manner. The phrase "agreed to be provided" implies: (a) Services which have only been agreed to be provided but are yet to be provided are taxable; (b) Receipt of advances for services agreed to be provided become taxable before the actual provision of service; (c) Advances that ar....
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....as been availed were meant for construction of immovable property (Hotel) from which the taxable services as that of Mandap Keeper etc. were agreed to be provided. With these observations, we hold that the appellant is entitled for availment of cenvat credit on the said input services. Issue No. 1, accordingly, stands decided in favour of the appellant. Issue No. 2 -As per Rule 4 (2) of CCR, 2004 as already quoted above, all capital goods received in the factory or in the premises of the provider of output service are eligible for taking cenvat credit and there is no requirement of use of goods of services. The appellant has availed the cenvat credit of Rs. 30,01,598/- on the capital goods to be installed in the hotel under construction. All those goods qualified to be called as capital goods as per Rule 2(a) of CCR, 2004 and are received to be used in the premises meant for providing the agreed output services. We don't find any evidence produced by the Department to the contrary. 13. There is nothing in the order under challenge to deny the same except that the adjudicating authority has held that cenvat credit on capital goods is to be determined with reference to the duti....