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2023 (9) TMI 55 - AT - Central ExciseRecovery of CENVAT Credit alongwith interest and penalty - input services - ‘setting up’ of a factory - denial of credit on the input services availed for ‘setting up of a factory' as the same has been specifically omitted from the ‘includes’ part of the definition vide Notification No. 03/2011 dated 01.03.2011, w.e.f. 01.04.2011 - HELD THAT:- In the case of M/S BHARAT COKING COAL LTD. VERSUS COMMR. OF CENTRAL EXCISE & S. TAX, RANCHI [2021 (10) TMI 383 - CESTAT KOLKATA] the Tribunal Kolkata, allowed CENVAT Credit of the service tax paid towards setting up of plant. The subject input services have a direct nexus with the manufacture of finished goods in the ‘means’ clause of the definition of input services. Accordingly even if the word ‘setting up of a factory’ has been specifically excluded from the definition w.e.f. 01.04.2011, such services are covered within the ambit of main clause of the definition. Hence, it would still qualify as an input service as per Rule 1(I) of CCR, 2004. Cenvat credit availed by the Appellant on the input services used in setting up of the factory is allowed - impugned order confirming the demand along with interest and imposing penalty is set aside - appeal allowed.
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