TMI Blog2017 (7) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... is put into use for rendering taxable output services. Input services includes the services used in relation to settingup, modernization, renovation of premises of provider of output services. Avaliment of CENVAT credit on the input services which are used for brining into existence of immovable property are also eligible for availment of CENVAT credit - appeal allowed - decided in favor of appellant. - ST/716/2012 & ST/26265/2013 - A/31079 & 31080/2017 - Dated:- 20-6-2017 - Mr. M. V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member (Technical) Sh. Anil Sood, Advocate for the Appellants Sh. P.S. Reddy, T.J.S. Prabhakar, (ARs) for the Respondent ORDER [Order Per: M. V. Ravindran] 1. These two appeals are taken up for disposal by common order as the issue involved in these appeals is the same. 2. These appeals are directed against Orders-in-Original No.01/2012-Adjn. (Commr) ST dated 27.01.2012 10/2013-Adjn (Commr.) ST dated 19.03.2013. 3. The relevant facts that arise for consideration in these appeals are the appellants herein had availed CENVAT credit during the period April, 2008 to September, 2009 of the service tax pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d submit that there cannot be any dispute that the building constructed is for setting up of a hotel which is used for providing taxable output services. He would submit that similar issue came up before the Tribunal in the case of Reliance Gas Transportation Infrastructure Ltd., CST, Mumbai-II [2016 (45) STR 286 (Tri.- Mumbai)] and the Tribunal in paragraph no. 10 to 16 and 19 to 23 specifically went in to the self same issue and held that the CENVAT credit can be availed by assessee. He would also rely upon the decision of the Hon ble High Court of Gujarat in the case of Mundra Ports and Special Economic Zone Ltd., Vs. CCE C [2015 (39) STR 726 (Guj.)]. 5. Ld. Departmental Representative on the other hand submits that the building which is constructed by utilizing the services under Works Contract Services, Project Management Services and Architectural Professional Services are for the purpose of brining existence and immovable property and hence CENVAT credit cannot be availed on such services. He would draw our attention to the CBEC Circular No. 98/1/2008 ST dated 04.01.2008 and submits that the said Circular categorically provides for denial of CENVAT credit of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. It can be seen from the above reproduced Sub rule, that input services includes the services used in relation to settingup, modernization, renovation of premises of provider of output services. In the case in hand, the definition is reproduced as above categorically will apply and the clarification given by the Board in CBEC Circular dated 04.01.2008 is going beyond the definition as reproduced is herein above. We find that similar issue as to eligibility to avail the CENVAT credit on design and engineering of pipe line, services rendered by the pipeline laying of contractors, was denied in the case of Reliance Gas Transportation Infrastructure Ltd., (supra), holding that these services were utilized for brining into existence an immovable property. The Bench after considering the definition of input services, held that the provisions of Section 2(l) of the CENVAT Credit Rules, 2004 very clearly indicate eligibility to avail CENVAT credit of the service tax paid on these services. 8. Views of the Tribunal have been fortif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finition of Rule 2(k) would demonstrate that all the goods used in relation to manufacture of final product or for any other purpose used by a provider of taxable service for providing an output service are eligible for Cenvat credit. It is not in dispute that the appellant is a taxable service provider on port under the category of port services. Therefore, the appellant was entitled for input credit and the decision of the Division Bench of the Andhra Pradesh High Court squarely applies to the facts of the case and answered the question on which the appeal has been admitted. 8. Mr. Y.N. Ravani, learned counsel for the Revenue has placed reliance on the decision of the Larger Bench of the Tribunal in Vandana Global Limited v. Commissioner of Central Excise, Raipur, 2010 (253) E.L.T . 440. We have carefully gone through the decision of the Larger Bench of the Tribunal. We do not find that amendment made in Cenvat Credit Rules, 2004 which come into force on 7-7-2009 was clarificatory amendment as there is nothing to suggest in the Amending Act that amendment made in Explanation 2 was clarificatory in nature. Wherever the Legislature wants to clarify the provision, it clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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