TMI Blog2023 (2) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of PIRAMAL GLASS LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA [ 2019 (10) TMI 1032 - CESTAT AHMEDABAD] where it was held that There is no dispute that the appellant have an existing manufacturing factory wherein many other plants and machinery and two furnace were already setup and with the said existing facility, the appellant are manufacturing excisable goods for last many years. For enhancing their production, the appellant set up a new furnace, it cannot be said that they have setup a new factory. It is merely an expansion of the existing factory and therefore, even if the term setting up of factory is removed from the inclusion clause of definition of input service, it does not adversely affect the appellant to avail Cenvat credit on various services. Thus, a consistent view was taken by this Tribunal that even though setting up of a new factory, construction of building of service provider is not excluded from the definition of Input service. In this case the construction of Jetty is clearly in the nature of expansion of existing Jetty therefore, credit is clearly admissible. Appeal allowed. - SERVICE TAX Appeal No. 10310 of 2021-SM - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new Jetty. The additional Jetty is nothing but expansion of the existing Jetty. Therefore, the expansion, renovation or modernization of existing jetty, construction is still covered in inclusion clause of definition of Input Service under Rule 2(l) of Cenvat Credit Rules, 2004. On this issue, this tribunal has decided the matter in following judgments:- (a) In the case of Piramal Glass Limited (supra), this Tribunal passed the following order: 4 . I have heard both the sides and perused the record, I find that there is no dispute that the appellant have an existing manufacturing factory wherein many other plants and machinery and two furnace were already setup and with the said existing facility, the appellant are manufacturing excisable goods for last many years. For enhancing their production, the appellant sot up a new furnace, it cannot be said that they have setup a new factory it is merely an expansion of the existing factory and therefore, even if the term setting up' of factory is removed from the inclusion clause of definition of input service, it does not adversely affect the appellant to avail Cenvat credit on various services. Moreover, as per the amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, it was correctly interpreted that even if the term setting up of factory is removed, eligibility of Cenvat credit has to be ascertained in view of the main clause of the definition according to which all the services used in or in relation to the manufacture of final product, directly or indirectly are input service. In the present case, installation of new furnace is directly used in relation to manufacture of final product. Therefore, even as per the main clause of the definition of the input service, these services are input services and credit is rightly availed by the appellant. 7 . As regards the decision relied on by the Id. AR, find that firstly, this judgment is for the period prior to 01.04.2011 and secondly, all the services were used for setting up of a new factory. Therefore, the facts of Liugong Indian Pvt. Limited (supra) case are different from the facts of the present case. 8 . As per my above discussion, the impugned order is set-aside and the appeal is allowed. (b) In the case of Manaksia Coated Metals Industries Limited (Supra), it was held: 5 . On careful consideration of the submissions made by the Ld DR and on perusal of records, I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the provision of taxable services for which the credit on motor vehicle is available as capital goods; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;?; 6 . It can be seen from the above definition, the services which are used in modernization, renovation, repairs of the factory Service Tax credit can be availed. It is not clear from the records as to how both the authorities have come to a conclusion that the said expansion/renovation is not covered under the definition of the input service and especially under modernization/ renovation or repair of the factory It can not disputed that the services rendered by the service provider in the factory premises of the appellant and the services hired were used for the reasons mentioned for. 7 . In view of the fore going, I find that both the lower authorities were in error in rej ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
