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TMI Blog2019 (6) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Sector Undertaking engaged in manufacture of steel and steel products. During the year 2005-06, an expansion programme to enhance the capacity from 3 M.T to 6.3MT was approved by the Government. One part of the expansion was Seemless Tube Mill Project. In order to execute this project, the appellant awarded the consultancy and engineering contract to M/s Dastur & Company covering the activities of basic and detailed engineering, approval of drawings etc. They engaged some engineering firms for site levelling, filing and structural works of the project. For these services, they paid the engineering firms an amount of Rs. 10.86 Crores and took CENVAT Credit of Rs. 1,13,14,936/- on the services which they have availed. Subsequently, they de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was abandoned. Therefore, the assessee is not entitled to CENVAT Credit of the services used in setting up of the Seemless Tube Mill Project. After following due process, the Ld. Commissioner disallowed the credit as proposed in the show cause notice and confirmed the demand for recovery of the same as per Rule 14 of CCR 2004 read with Section 11 of central Excise Act, 1944. He also proposed recovery of interest at applicable rate, as per Rule 14 of CCR 2004. Further, he imposed a penalty of Rs. 5.00 lakhs under Rule 15(1) of CCR 2004 on the appellant. It is his finding in the order that the nexus has to be established between the services rendered and the business carried on by the assessee and the services rendered in relation to modern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to their business and can be held as in relation to production of the goods which they are manufacturing although no goods were manufactured whatsoever from the abandoned project itself on which they have availed CENVAT Credit. He relied on the decision of Hon'ble High Court of Bombay in the case of Coca Cola India Pvt. Ltd. [2009(15)STR 657 (Bombay)] in which it was held that the usage of term ' means' and includes and ' such as' are very wide in nature. He would argue that therefore they are entitled to the benefit of CENVAT Credit on the abandoned project. He also relied on the judgment of Hon'ble High Court of Bombay in the case of Ultratech Cement Limited [2010(20)STR 577 (Bom.)] to ascert that the term input service covers in the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured products. We are unable to agree to Ld. Counsel that they are also entitled to CENVAT Credit of services used in abandoned project. A plain reading of CENVAT Credit Rules 2004 does not show that they are so entitled to this credit. The statutes must be read and interpreted and there cannot be any intendment in taxing statute. In the absence of any explicit provision for allowing CENVAT Credit for the abandoned projects from which no goods were ever manufactured and no services were ever rendered, we find that the appellant assessee is not entitled to CENVAT Credit. The credit was taken between February 2007 and April 2008. There is nothing to show that after they have decided to abandon the project in February-March 2008, they have ei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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