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2021 (11) TMI 1127 - AT - Service TaxRecovery of CENVAT Demand - input services or not - eligibility of CENVAT credit on the services used for setting up of the new Technology Centre - effect of amendment brought into Rule 2(l) ibid vide Notification No.3/2011- C Ex.(NT) dated 1.3.2011, effective from 1.4.2011 - period of dispute involved in this case is from October 2011 to March 2016 - HELD THAT:- The definition of ‘input service’ was amended with effect from 1.4.2011. under the un-amended definition, the phrase ‘setting up’ was specifically provided in the inclusive part for consideration as input service. However, the said phrase was deleted in the amended definition from 1.4.2011. Accordingly, the department had entertained a belief that in view of deletion of such phrase in the definition clause, the appellant should not be eligible for the benefit of consideration of the disputed services as input service. On perusal of the definition of ‘input service’ contained in the CENVAT statute, it transpires that the services used either directly or indirectly, in or in relation to the manufacture of final product should be considered as input service. In this case, it is an undisputed fact that the appellant had availed CENVAT credit on the disputed services for setting up of new Technology Centre and that by utilising such facility, it had provided the output services defined under the service tax statute. Since the disputed services were ultimately meant for accomplishing the objective of providing the output service, it cannot be said that since, the phrase ‘setting up’ was specifically excluded in the inclusive part of definition of input service, the benefit of CENVAT credit should not be available. Even though, such phrase was deleted in the inclusive part of the definition of input service with effect from 1.4.2011, but the main part of such definition clause has considered within its ambit such phrase as input service for the purpose of availment of CENVAT credit of service tax paid on the disputed services. Thus, the denial of CENVAT benefit on the disputed services cannot be sustained. There are no merits in the impugned order insofar as it has denied the CENVAT benefit and confirmed the adjudged demands on the appellant - appeal allowed.
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