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2016 (12) TMI 15 - CESTAT CHENNAI

2016 (12) TMI 15 - CESTAT CHENNAI - 2017 (48) S.T.R. 91 (Tri. - Chennai) - CENVAT credit - commercial construction services used for the construction of annealing sheds, pickling sheds, EB room, wire drawing room, compound wall, rest room, toilet, security room, overhead tank, road laying etc - whether the allegation that assessee had contravened the provisions of Rule 2 (l) and Rule 3 of CCR 2004 by availing credit on ineligible input services as the said services have not been used for providi .....

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al is subjected, the manufactured product emerges. Therefore, each step towards such production would be a process in relation to the manufacture. Whether any particular process is so integrally connected with the ultimate production of goods but for that, process, manufacture or processing of goods would be impossible or commercially inexpedient, that process is the one in relation to the manufacture. There is no warrant for limiting the meaning of expression “in the manufacture of goods’ throu .....

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part of the factory and hence credit taken over the input services by the respondents is eligible. I also find that in view of the clarification issued by the Board’s circular dt. 29.4.2011 cited (supra) and in view of the fact that the services have been rendered and billed prior to 1.4.2011 for which payment has also been paid on 1.12.2007 i.e. prior to 1.4.2011. Hence in this view of the matter also, the input service tax credit is eligible as clarified by the above mentioned Board’s circular .....

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of other alloy steel and have availed credit of service tax paid on commercial construction services used for the construction of annealing sheds, pickling sheds, EB room, wire drawing room, compound wall, rest room, toilet, security room, overhead tank, road laying etc. It was alleged that the assessee had contravened the provisions of Rule 2 (l) and Rule 3 of CCR 2004 by availing credit on ineligible input services as the said services have not been used for providing any output service as we .....

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whether the respondents are entitled to avail input service credit of service tax paid on construction in the factory premises during the period December 2007 and the bills have been raised by the contractor and service provider and the last payment for the bills were made on 1.12.2007. The service tax has been charged on the construction service by the service provider which was paid by the appellant. The appellant took credit of the tax paid on input service. 3. The Ld. A.R. appearing for app .....

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ssue Clarification 4. Is the credit of input services used Credit of input for repair or renovation of factory services used for or office available repair or renovation of factory of office is allowed. Services used in relation to renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, are specifically provided for in the inclusive part of the definition of input services. He further submits that the above mentioned construct .....

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finished products or machineries from the factory premises. He also drew my attention to the Board s circular filed by Ld. A.R issued by TRU, Ministry of Finance wherein at S.No. 12, the issue was - Is the credit available on services received before 1.4.2011 on which credit is not allowed now ? e.g. rent-a-cab-service. The clarification was given as follows :- Credit of such services was available if its provision had been completed before 1.4.2011 . Ld. Counsel also argued that the activity su .....

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ese are not directly or indirectly related to the process of manufacture. The law does not permit or allow the service tax paid on every construction services to be availed as credit. The appellate authority allowed the cenvat credit on the basis of Bombay High Court judgement in the case of CCE Nagpur Vs Ultratech Cement Ltd. - 2010 (20) STR 577 (Bom.). The processing of goods was in relation to manufacture implies not only production but the various stages through which the raw material is sub .....

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