Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 746 - AT - Central ExciseCENVAT Credit - input services - the works contract for the repair or maintenance used in the factory building and the administrative building alongwith other fabrication work and civil work - Held that:- Coming to the inclusion part of the definition the pare perusal clarifies that the services used in relation to the modernisation, renovation, repair, etc. are the eligible input services. These two perusal are creating a clear distinction between what is called as repair and maintenance and what is called as construction and that these two are two separate services altogether. Apparently and admittedly the services provided by the contractor of the appellant to the appellant are the Repair and Maintenance Services though in the form of work contract for civil structure but for the purpose of repair and maintenance. The invoices as placed on record clearly mentions the same. Thus the services rendered is the work contract for the maintenance of already existing structure within the appellant’s plant wherein is carried on the manufacturing of the petroleum products (final products) by the appellant. The harmonious reading of the inclusive part of the definition and the exclusion clause mentioned at Clause (a) relating to construction service of the definition of ‘input service’, it is clear that the construction service relating to modernisation, renovation and repair of the factory continued to be within the meaning of ‘input service’ and accordingly, the service tax paid on such service is eligible to credit. Undisputedly, the appellants carried out modernisation, renovation or repair work in their factory premises as is evident from the input service invoices enclosed with the respective appeal paper book; therefore, the same are eligible to credit. The Commissioner(Appeals) has definitely committed an error while just relying upon the fact that the services provided were in the nature of work contract and he has failed to appreciate the work contract is not for construction but only for repair and maintenance. The findings are therefore liable to be set aside. The impugned order denying the cenvat credit on Repair and Maintenance Service on the ground of these being work contracts which are not input services - Appeal allowed - decided in favor of appellant.
|