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2019 (6) TMI 1326 - AT - Service TaxCENVAT credit - inputs/capital goods/input services which had been consumed in the construction of malls - whether the appellants are eligible to avail the Cenvat credit on the services supplied to them by their job workers/contractors for which raw materials have been supplied by them? - period prior to the amendment of the provisions of input services under the Credit Rules i.e. prior to 2011 and also subsequent to that period - HELD THAT:- The issue is no longer res integra in view of the decision of Hon’ble Andhra Pradesh High Court in the case of COMMR. OF C. EX., VISAKHAPATNAM-II VERSUS SAI SAHMITA STORAGES (P) LTD. [2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT] which was subsequently followed in various other cases. In all these cases, the issue was similar and identical and it was held by various Tribunals/High Court that in such a situation, the appellant would be entitled for the benefit of Cenvat credit prior to amendment. The learned AR has placed reliance that the services were not directly provided by the appellant, but was through their contractors. It is argued that these contractors were employed by the appellant, who were provided raw materials to them. Also these contractors have paid the service tax and recovered that from the appellant. Hence, we find that the appellants have rightly taken the Cenvat credit as per Credit Rules - It is of no relevance as to whether the construction has been done through the contractors or not as long as service tax is paid, the appellant is entitled for Cenvat credit and subsequent utilisation thereof for payment of service tax. Appeal allowed - decided in favor of appellant.
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