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2013 (11) TMI 959 - AT - Service TaxCenvat credit on Construction Service for setting up of factory - Whether Service tax on setting up of immovable property is a service and goods can be taken as inputs on which credit can be taken – Held that:- The inclusive portion of the definition of input services covers ‘services used in relation to setting up, modernization, renovation or repairs of a factory, or premises of provider of output service or an office attached to such factory or premises’ - Thus the service use in relation to setting up of factory was specifically covered by the definition of ‘input service’ under Rule 2(l) of Cenvat Credit Rules – Relying upon Suzuki Motorcycle (I) Pvt. Ltd. Vs. Commissioner of Central Excise, Delhi [2011 (2) TMI 56 - CESTAT NEW DELHI]. In Board’s Circular dt. 04.01.08, there is a clarification with regard to availing the construction service or commercial or industrial construction service in respect of immovable property which had been rented out and the clarification appear to be on the point as to whether for payment of service tax in respect of renting of the immovable property, the Cenvat Credit of the service tax paid on construction service can be availed - This clarification would not be applicable when construction service has been availed for setting up of factory for manufacture of excisable goods which during the period, of dispute was specifically covered by the definition of ‘input service’ as given in Rule 2(l) of the Cenvat Credit Rules – Decided in favour of Assessee.
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