TMI Blog2018 (5) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed. CENVAT Credit of ₹ 5,16,557/- on construction services - denial on the ground that these services were rendered for the housing complex and the residential colony - Held that: - in order to meet ends of justice, appellant is extended an opportunity to substantiate their claim that the cost of these construction services was considered for arriving at the final price of the goods manufactured - matter remitted back to the adjudicating authority to reconsider the issue afresh after following due process law. CENVAT Credit of ₹ 25,20,383/- and ₹ 2,08,821/- in respect of construction services - denial on the ground that the service tax is paid on construction services which are excluded from the definition of inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding eligibility to avail CENVAT credit of service tax paid on input services rendered to appellant, The details are as under:- Appeal No. E/85605/16 (a)Tours and Travels (i) Credit of ₹ 78,696/- disallowed. (ii)Period-November 2008 to March 2011 (b) Construction Service- (i) An amount of ₹ 5,16,557/- period November 2008 to March 2011 disallowed on the ground that these services were rendered for the housing complex and the residential colony. (c) Construction Services- (i) An amount of ₹ 25,20,383/- for the period April 2011 to August 2013 denied on the ground that the service tax is paid on construction services which are excluded from the definition of input services. Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities. As regards CENVAT credit of ₹ 5,16,557/-, it is his submission that these services were undoubtedly used for housing complex and residential colony but submits that the cost of these services were included in the final product cleared by them, hence CENVAT Credit has to be allowed. For this proposition, he relies upon the decision of the Tribunal in the case of Reliance Indust ries Ltd v. Commissioner of Customs and S.T (LTU)-2016 (42) STR 457 ( Tri. mum). 6.1 As regards the denial of CENVAT Credit of ₹ 25,20,383/and ₹ 2,08,881/-, it is his submission that these construction services were used for repair and renovation of the factory premises and draws my attention to the chart submitted as annexed to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit. In my considered view, the evidences which were produced before the lower authorities and the statement produced indicate that Tours and Travels were undertaken by the employees of the appellant for official work. In view of this, I find that denial of CENVAT Credit amounting to ₹ 78,965/- is incorrect and needs to be allowed to them and I do so. 8.1 As regards CENVAT Credit of ₹ 5,16,557/-, it is the claim of the learned Counsel that these expenses incurred and taxed under Construction Services are for housing complex and residential colony are included in the cost of final product is not substantiated before the lower authorities. It is his submission that they will be in a position to substantiate the claim that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2011 will not be attracted in the case in hand as factually it is noticed that these services were used for repair and renovation of the factory. I find strong force in the contention raised by the learned Counsel that this issue was clarified by the CBEC by Circular No. 943/4/2011-CX dated 29th April 2011, at sl.No.4. In view of the foregoing, I hold that the appellant is eligible to avail of CENVAT Credit of ₹ 25,20,383/- and ₹ 2,08,821/-. 9. In view of the fact that the issue involved in this case is regarding interpretation of the provisions, in my considered view, appellant need not to be visited with any penalty under any provisions. 10. The appeals stand disposed of as indicated herein above. (operative pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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