TMI Blog2020 (7) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to manufacture of the final products whether directly or indirectly is covered under the definition of input service - This definition has been further enlarged by adding several other input services such as those services used in relation to setting up, modernisation renovation etc. The terms setting up has been deleted with effect from 01.04.2011 and hence was not on the Statute during the relevant period - The third part of the definition excludes certain types of services and this exclusion part of the definition also does not have in it, the services used in setting up of the plant. The services used in relation to setting up of a plant are neither specifically included nor specifically excluded during the relevant per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led 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 department is that these services were used by the appellant for setting up the plant and the term setting up has been specifically excluded from the definition of input service with effect from 01.04.2011 by Notification No. 3/2011-CE(NT) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Thus as far as the enlargement definition of Rule 2(l) is concerned, setting up has been deleted. However, services used in relation to setting up have not been specifically excluded from the definition. Thus the services whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 with setting up of the plant which has been deleted from the inclusion part of Rule 2(l) of CENVAT Credit Rules 2004. 8. As can be seen from the three components of the definition of input service under Rule 2(l) of CENVA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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