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2024 (1) TMI 722 - CESTAT AHMEDABADCENVAT Credit - input used for providing the construction service - Cement, MS Angles, Channels, TMT Bars, and TMT Rods etc. - contention of the Revenue is that as per the amended Rule 2 (k), the goods on which credit was taken have been excluded - HELD THAT:- On the plain reading of the amended Rule 2 (k) and Explanation 2 there of it is absolutely clear that with regard to the manufacture the input does not include Cement, MS Angles, Channels, TMT Bars, CTD bar and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods. This clearly shows that Explanation 2 is exclusively in respect of manufacturer and not for the service provider. Therefore, the entire base of the department’s case on Explanation 2 completely fails as the exclusion in respect of the goods in question is not applicable to the service provider but its applicable only to the manufacturer. Therefore, the appellant undisputedly being a service provider of CICS is clearly eligible for the cenvat credit in respect of the goods in question against the output service of construction. This issue has been considered by the Jurisdiction High Court in the case of MUNDRA PORTS AND SPECIAL ECONOMIC ZONE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & CUSTOMS [2015 (5) TMI 663 - GUJARAT HIGH COURT] where it was held that The denial of input credit to the appellant by the respondent is set aside. It is absolutely clear that the cenvat credit on the goods namely Cement, MS Angles, Channels, TMT Bars, TMT Rods etc. for service provider of CICS cannot be denied in terms of Rule 2 (k) of Cenvat Credit Rules, 2004 prevailing at the relevant time. The impugned order set aside - appeal allowed.
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