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2013 (1) TMI 165 - AT - Service TaxCenvat Credit of service tax paid on input services used for ammonia storage tank - denial of Credit as storage tanks are attached to earth and therefore are immovable property and also that the services are being used outside the factory premises - Held that:- As under Rule 4(7) there is no such restriction about the use of input services outside the factory but Rule 4(7) is to be read with definition of input service under Rule 2(l) of the Cenvat Credit Rules stating that only those services will qualify for the input services which are used after input stage or those input services are used in the manufactured or produced from input or said service Ammonia is imported by the appellant and after goods are cleared from the port and the goods are delivered to the appellants. Procurement of the input is over after taking delivery of the goods. Thereafter appellants are eligible for credit of service tax paid on inward transportation of the inputs as per definitions of the input service. Thus finding that Consulting Engineer Service, Technical Inspection and Certification Service, Construction Service and erection, commissioning and installation service are used in installation of storage tanks outside the factory. Inclusive definition of input service also includes input services used in relation to storage upto the place or removal. Storage upto place of removal will include the storage of final products and not storage of inputs because whenever legislature wanted to give the benefit, in respect of inputs it has done so by specifically mentioning as procurement of inputs and inward transportation of the inputs. Therefore, input services used in relation to storage of inputs outside the factory will not be eligible for the credit. Since the appellants were not eligible for the Cenvat Credit penalty under Rule 15A and also the interest has rightly been confirmed by the adjudicating authority - against assessee.
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