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2017 (4) TMI 951 - AT - Service TaxCENVAT credit - inputs - input services - Held that: - the steel, cement and such other items have been used to construct the building which is used by appellant to provide the output service of Renting of Immovable Property. Therefore, the credit availed on inputs by appellant prior to 01.04.2011 is eligible for credit - The credit availed on cement, steel etc., as inputs which are used for construction of building after 01.04.2011 is not admissible as per definition of inputs w.e.f. 01.04.2011. From the above, the credit availed on inputs by appellant after 01.04.2011 is not eligible for credit. Input services - The department has denied credit alleging that all these services are for setting up of premises of the appellant and therefore not admissible - It is the case of appellant that the input services were not availed for setting up of the premises, but the services were availed only for modernization and renovation of the premises - Held that: - The period involved in this issue is after 01.04.2011 only. The definition of input services w.e.f. from 01.04.2011 also underwent amendment, whereby the services relating to setting up of factory/premises of provider of output service was deleted from the definition - From the table itself it is clear that the services are not per se for construction of building or setting up of premises and these are merely renovation/modernization works. The services in the table show that these are construction services for laying the flooring, Erection of Machinery, Electric Installation Works, Single Leaf Door, Installation Boom Barriers, Electrical Consultancy Charges. Since these services would fall within the category of modernization, renovation services which come within the inclusive part of the definition of input services, the services are eligible for credit. Extended period of limitation - credit availed on inputs after 01.04.2011 - Held that: - the eligibility of credit was interpretational issue, and appellants were under bonafide belief that credit is admissible while availing the credit - there is no evidence to establish that appellant had availed the irregular credit on inputs after 01.04.2011 by suppression of facts with an intention to evade payment of duty - the extended period is not invokable. Appeal allowed - decided in favor of assessee.
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