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2019 (5) TMI 1044

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..... r renovation is included in the definition of input service as provided in Rule 2(l) - Further, the Board vide its circular dated 29.4.2011 has also clarified the issue that credit on input services used for repair or renovation of a factory or office is allowed. The modernization, renovation or repair of the premises of the service provider has been held to be input service by various decisions of the Tribunal. Further, these input services are essential for maintenance and upkeep of the premises which is used for storing imported goods and to render the service of cargo handling at the customs station. CENVAT Credit - input services - renting of motor vehicles is concerned - HELD THAT:- The CENVAT credit on input service relating to servi .....

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..... ast Services, Gandhi Automations Pvt. Ltd., etc. The department entertained a view that the appellant has availed CENVAT credit on input services which have been specifically excluded in the definition of input service as provided in Rule 2(l) of CENVAT Credit Rules, 2004. On these allegations, a show-cause notice dated 4.1.2016 was issued to the appellant proposing to recover the credit that was wrongly availed on the services of civil work, cement laying work, floor tiling work and also credit availed on rent-a-cab operation service and servicing of motor vehicle. Show-cause notice demands ₹ 8,00,223/-as wrongly availed credit and also proposed penalty under Section 78. After considering the submissions of the appellant, the origina .....

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..... e further submitted that by the impugned order, the CENVAT credit has been denied only on the ground that the services carried out by the appellant are specifically excluded from the definition of input service w.e.f 1.4.2011 when the definition of input service was amended. He further submitted that the exclusion which is specified under Rule 2(l) of CCR, 2004 is applicable if the services are used for construction or execution of works contract and construction services including services listed under Section 66E(b) of the Act, if they are used for construction or execution of works contract of a building or a civil structure or a part thereof or for laying the foundation or making of structure for support of capital goods. He further sub .....

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..... services involved in those case laws were specifically excluded whereas the input service involved in the present case are covered by the definition of input service as provided in Rule 2(l). In support of his submission, he relied upon the decision of the Tribunal in the case of Mahindra & Mahindra Ltd. vs. CCE: 2016 (45) STR 92 wherein it was held that expansion of capacity of Effluent Treatment Plant (ETP) and floor work done inside the factory fall within the work of modernization, renovation or repair work and eligible for credit. He also relied upon the decision of the Tribunal in the case of Hydus Technologies India Pvt. Ltd. vs. CCE reported in 2017 (52) STR 186 wherein it was held that service relating to interior electrical a .....

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..... nial of credit is without jurisdiction. He also placed on record, the agreement between the appellant and the Bangalore International Airport Ltd. from whom the appellant have taken the premises on rent. The said agreement also provides that the appellant can carry out repairs and expansion and alteration as part of their obligation of the agreement. 5. On the other hand, the learned AR defended the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the impugned order denying the CENAT credit mainly relying upon the exclusion clause as provided in Rule 2(l) is not sustainable in law because the input service involved in the present case relates to repair and renovation .....

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