Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 712 - AT - Central ExciseCENVAT Credit - input services or not - services availed for ‘setting up of a factory’ - scope of Rule 2(l) of the CCR, w.e.f. 01.04.2011 - HELD THAT:- The definition of ‘input services’ was amended w.e.f 1.04.2011, wherein the words ‘setting up of the plant’ available in the earlier definition has been specifically excluded. Hence, the department contended that the Appellant was not eligible for the input services credit used in setting up of the plant after 1.04.2011. However, the Appellant contended that the definition still covers input services used for setting up of the plant under the ‘means’ part of the definition - the issue has been dealt by the Tribunal in the case of PEPSICO INDIA HOLDINGS (PVT.) LTD. VERSUS COMMISSIONER OF CENTRAL TAX, TIRUPATI [2021 (7) TMI 1094 - CESTAT HYDERABAD] wherein it has been observed Although setting up the factory is not manufacture in itself, it is an activity directly in relation to manufacture. Without setting up the factory, there cannot be any manufacture. Service used in setting up the factory are, therefore, unambiguously covered as ‘input services’ under Rule 2 (I) (ii) of the CENVAT Credit Rules 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. Once it is covered in the main part of the definition of input service, unless it is specifically excluded under the exclusion part of the definition, the appellant is entitled to CENVAT credit on the input services used. The subject input services used in setting up of the plant have a direct nexus with the manufacture of final goods. Therefore, these ’input services’ used in setting up of the plant are covered within the ambit of ‘means’ clause of the definition of ‘input service’. Accordingly, even if the word ‘setting up’ is specifically excluded from the definition of ‘input service’, w.e.f. 01.04.2011, such services used in setting up of the plant would still qualify as an ‘input service’ as per Rule 2(l) of CCR, 2004. Appeal allowed.
|