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2018 (5) TMI 411 - AT - Service TaxCENVAT credit - input services - construction service in respect of residential colony - construction of guest house and construction of school building - Rule 2(l) of CENVAT Credit Rules, 2004 - Held that: - any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of the final products and clearance of final products upto the place of removal would be an input service. The ‘includes’ part is worded in such a way that it takes in a large number of services which includes services used not only directly or indirectly, in or in relation to manufacture of final products and their clearance. After 1.4.2011, the legislature has deleted the services of settling up of factory and also activities relating to business. The services of motor vehicle repair and maintenance as well as vehicle insurance has been excluded. The period being prior to 1.4.2011, the services of construction of residential colony and repair and maintenance of vehicle as well as insurance services are eligible for credit - The appellant is eligible for credit in respect of construction service used for setting up of residential colony in the factory premises - However, the very same view cannot be applied in the case of guest house and school constructed by the appellant inside the factory premises as the construction of school for providing education to the children of the employees of the factory will fall wholly as a welfare activity and it has no nexus or relation to the activity of manufacture. The credit allowed in respect of construction of residential complex and services relating to vehicle maintenance and repair service and vehicle insurance are eligible for credit whereas the credit availed on construction of school building and guest house cannot be allowed. Appeal allowed in part.
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