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2022 (5) TMI 1119 - AT - Service TaxCENVAT Credit - input services - Construction/ Works Contract Service for re-carpeting of road in their industrial estate - credit denied on the ground that it is a new construction of road under works contract service which is excluded in the definition of Input Service under Rule 2(l) of Cenvat Credit Rules, 2004 - HELD THAT:- The fact is not under dispute that the industrial estate already existed and for moving around the Industrial Estate the tar roads were also existing. The works contract/ construction was executed for the purpose of re-carpeting of existing road. Therefore, the said services are for the purpose of repair and renovation of the exiting industrial estate. It is observed from the notes of the Board meeting for the purpose of re-carpeting of the road that it is for re-carpeting and not for new construction of road. Therefore, this service is for repair and renovation and not for originating the new construction. This issue has been considered in the decision of this Tribunal in the case of RELIANCE INDUSTRIES LTD. VERSUS C.C.E. & S.T. -RAJKOT [2022 (4) TMI 729 - CESTAT AHMEDABAD] where it was held that any service relating to modernization, renovation of the existing factory is admissible as input service which is the direct case of the appellant. From the above decision of this Tribunal it is clear that any construction and works contract if used for repair and renovation of existing factory, the same falls under inclusion clause of definition of Input Service, accordingly, the Cenvat credit is admissible - Appeal allowed - decided in favor of appellant.
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