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2019 (5) TMI 140 - AT - Central ExciseCENVAT Credit - input services - portion of factory premises that was rented out to another - case of Department is that a portion of the factory premises that is rented out cannot be said to be used for the manufacture or clearance of final products - HELD THAT:- The definition of ‘input service’ seeks to cover every conceivable service used in the business of manufacture of final products - Similarly, leasing out a part of the factory which is not used by the manufacturer and that too, to their joint venture partner, can help the manufacturer in raising funds or other business benefits. Such activities which are used in relation to the business of manufacture would be covered by the inclusive part of the definition. During the relevant period, the services relating to setting up of factory was an eligible input service. By the amendment which was introduced with effect from 01.04.2011, the services of setting up of factory as also activities relating to business of manufacture were deleted. Thus, for the period prior to 01.04.2011, the credit availed on construction services for setting up of factory was eligible. The Department does not have a case that the respondents have used the construction services for setting up of a building or civil structure which is not a factory. The allegation is that the factory was set up using the construction services and thereafter, part of the factory was leased out to another without being used in the manufacture of final products. When credit is eligible for setting up of factory and the respondents have correctly utilized the construction services for setting up of the factory, the same cannot be denied alleging that a part or portion of the factory was leased out to another. Invocation of Rule 3(5) of the CENVAT Credit Rules, 2004 - HELD THAT:- Rule 3(5) ibid speaks about reversal of credit availed on inputs or capital goods when such goods are cleared as such. There is no allegation in the Show Cause Notice that ‘inputs’ or ‘capital goods’ have been cleared as such - demand in the SCN do not sustain. Appeal dismissed - decided agianst Revenue.
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