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2022 (8) TMI 468 - AT - Central ExciseCENVAT Credit - Works Contract Services - Input Services - Department took the view that the services provided by the contractors were in the nature of ‘works contract services’ which, was excluded from the definition of input service under the Cenvat Credit Rules, 2004 - period from 01-04-2011 to July, 2015 - HELD THAT:- The definition of ‘ínput service’ has an inclusion clause and an exclusion clause. The intention of the government could never have been to cover certain services in the inclusion part and at the same time cover them also in the exclusion clause. The cases cited by the learned advocate for the appellants support this view. The expression “modernisation, renovation or repairs of a factory” was appearing in the definition of ‘input service’ both before and after 01.07.2012. It has not been denied by the department that the Coke Oven Project of the appellants was towards modernization and renovation of their existing plant/factory. In the case of RELIANCE INDUSTRIES LTD. VERSUS C.C.E. & S.T. -RAJKOT [2022 (4) TMI 729 - CESTAT AHMEDABAD], the facts were similar to that of the present case where the party had undertaken modernization and expansion of their facility, where it was held that The service provider has classified the services under ECIS and not under Construction Service and paid service tax under the head of ECIS. The ECIS Service independently not covered under the exclusion clause therefore, for this reason also credit cannot be denied. There is a catena of case laws wherein, it was held that the classification of service cannot be disturbed or challenged at the end of service recipient particularly for denial of cenvat credit. Once the classification is finalized at the service provider end, the same cannot be altered at the service recipient end. The Appellants have correctly taken credit of service tax paid/borne in respect of all services which were used for the Coke Oven Project as part of the modernization/renovation plan of the existing plant/factory - Appeal allowed - decided in favor of appellant.
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