TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 152
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....vailment in the books of accounts as well as the periodic excise returns filed during the underlying period. 1.1. The issue in the present appeal is related to availment of CENVAT credit by the appellant on input services such as construction, outdoor catering, repairs and maintenance and travel agency services. An Audit was conducted on the records of the appellant for the FY 2011-12, wherein the auditors were of the view that the CENVAT Credit availed by the appellant on the above said input services was irregular inasmuch on the ground that such services did not fall within the scope of the term 'input services' as defined under Rule 2(l) of the CCR, 2004. Thereafter, the appellant was also subjected to EA2000 audit for the period from September 2009 to March 2014. 1.2. On the basis of the audit observations, a Show Cause Notice bearing number V(28)15/Adjn/B1/Cenvat/64/2013/23894-A dated 30.09.2014, was issued to the appellant proposing to deny the CENVAT Credit availed by the appellant on the said input services during the impugned period. The Notice also demanded interest and proposed imposition of equivalent penalty. 1.3. After due process, the notice was adjudicated....
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....Cement Ltd. Versus C.C.E. & S.T. Bhopal [2017 (3) TMI 1283 - CESTAT New Delhi] 3.1. Accordingly, the appellant submits that CENVAT Credit of service tax paid for maintenance of grid outside the plant is admissible. 4. Regarding the credit of Rs. 10,90,445/- availed on service tax paid for maintenance of railway track, it is the appellant's submission that they have a railway track for transportation of inputs, raw materials to the factory, as well as outward transportation of finished goods. It is pointed out that vide letter dated 08.10.2008, they have duly declared to the Deputy Commissioner of Central Excise, Rayagada Division, that such railway forms part of the plant premises; such railway track has been held to be capital goods, in the nature of material handling system, by the Hon'ble Supreme Court in the case of Jayaswal Neco Ltd. v. Commissioner of C.Ex., Raipur [2015 (319) E.L.T. 247 (S.C.)]. In view of this, the appellant's plea is that they are eligible to avail the CENVAT Credit in respect of service tax paid in the maintenance of railway track. 5. Regarding CENVAT Credit of Rs.8,71,176/availed on Township maintenance, CENVAT Credit of Rs. 4,76,031/- availed o....
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....ustainable. We find that this view is supported by the Board Circular No. 943/4/2011-CX dated 29.04.2011 which clarified that CENVAT credit is available on such services, if its provision had been completed before 01.04.2011. 10.1. In support of the above view, we also refer to the decision of CESTAT, Mumbai pronounced in case of ISMT Ltd. v. Commissioner of C.Ex., Aurangabad [2015 (37) S.T.R. 148 (Tri. - Mumbai)], wherein CENVAT credit availed on civil construction services received prior to 31.03.2011 was allowed by the Tribunal. The relevant portion of the said decision is reproduced below for ready reference: "4. Having considered the rival submissions, I find that in view of the clarifications issued by the aforementioned Circular and in view of the fact that services had been rendered and billed prior to 1-42011 for which payment has also been paid prior to 1-4-2011. Such input Service Tax credit is allowable and otherwise also as clarified vide the above mentioned Circular. It is also held that the construction activity in the present case supports manufacture both directly and indirectly. Thus, the appeal is allowed with consequential relief, if any. Stay applic....
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....Rs.10,90,445/-availed by the appellant with respect to maintenance of railway track, it is observed that the appellant has been using the said railway track for transportation of inputs, raw materials to the factory, as well as outward transportation of finished goods. We find that the appellant has communicated this fact to the Deputy Commissioner of Central Excise, Rayagada Division, vide letter dated 08.10.2008, wherein they have declared the said railway track as part of the plant and machinery. 12.1. We also find that such railway track has been held to be capital goods, in the nature of material handling system, by the Hon'ble Supreme Court in the case of Jayaswal Neco Ltd. v. Commissioner of C.Ex., Raipur [2015 (319) E.L.T. 247 (S.C.)]. Thus, by relying on the decision of the Hon'ble Apex Court cited supra, we hold that the appellant is eligible to avail the CENVAT Credit in respect of service tax paid in the maintenance of railway track. Therefore, we set aside the disallowance of credit in the impugned order in this regard. 13. Regarding CENVAT Credit of Rs.8,71,176/- availed on Township maintenance, CENVAT Credit of Rs.4,76,031/- availed on Travel Agency Service....