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TMI Blog2020 (7) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... ral excise registration as well as service tax registration from the department. Intelligence gathered by the officers of anti-evasion indicated that the appellants have availed CENVAT credit on some ineligible input services. Investigations revealed that they had entered into a development agreement and lease deed with M/s Sri City (P) Ltd who managed the industrial estate in which the appellant was setting up their factory. They paid amounts as per the agreements along with service tax under the head Renting of Immovable Property Service as per the invoices raised by M/s Sri City. It is the CENVAT credit which is availed on infrastructure development agreement and lease deed with M/s Sri city Pvt Ltd which is in dispute. The case of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se services have a direct nexus to their manufacture and hence CENVAT credit must be 5. As far as the definition of input service under Rule 2(l) of CENVAT Credit Rules 2004 is concerned he fairly concedes that there was a change in the rule position with effect from 01.04.2011. After the amendment it reads as follows:- "(l) "input service" means any service, - (i) used by a provider of output service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ays that it includes services used in relation to modernisation, renovation or repairs of a factory premises of provider of output service or an office relating to such factory. Thereafter it excludes certain services from the definition. He would therefore submit that as can be seen from the definition whatever is covered in the first part of the definition is definitely covered as an input service unless it get excluded by the third part. In addition to the inclusions in the first part, the second part further enlarges the scope of certain services. Prior to 01.04.2011, this enlarged component of the definition included the services used in relation to "setting up" of a factory. After 01.04.2011, the words "setting up" has been deleted. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the arguments on both sides and perused the records. The short point for consideration is whether the appellant is entitled to CENVAT credit on the service tax paid under the deeds for infrastructure development agreement, lease deed and subsequent maintenance on which service tax was paid by the input service provider under the head of "renting of immovable property service". It is not in dispute that these services have been availed by the appellant and payments have been made. It is also not in dispute that the service provider had classified these services under the head of renting of immovable property service. The department is of the opinion that no CENVAT credit is admissible on these services because they are used in connection w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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