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TMI Blog2023 (8) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... spent sulphuric acid. The appellant was also holding service tax registration for the purpose of discharging service tax liability under the reverse charge mechanism and were availing the benefit of cenvat credit on inputs, input services and capital goods under Cenvat Credit Rules, 2004, (hereinafter referred to as CCR, 2004). 3. That Show cause notice dated 31.01.2019 was issued to the appellant for having wrongly availed the cenvat credit of Rs.36,598/- on maintenance charges and Rs. 84,000/- in respect of erection and commissioning services during the period 2016 to 2018. Further, they wrongly availed cenvat credit on structures, i.e., plates, angles and section of different sizes as capital goods which was not permissible in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The services provided under invoice No. COMP/845/UI/SER-01 dated 15.06.2016 by M/s Comp Engineering and Exports read as, "Erection of 2 TPH Detergent Spray Drying Plant with Erection of 2 TPH Detergent Spray Drying Plant with structure at your site". In order to appreciate as to whether the said services would fall under the substantive clause of the definition of 'input service' or under the exclusion clause, the definition of input service is set out hereunder: Rule 2 (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 fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or making of structures and does not specifically cover the services of Erection and Commissioning. It is a settled principal that exclusion clause has to be construed strictly and narrowly and therefore logically exclusion has to be expressed and not implied. It is not the case of the revenue that while rendering the services of erection and commissioning they have to lay the foundation or has to raise structures. Therefore, to my opinion the exclusion clause does not apply to service of erection and commissioning and hence it would fall under the main clause of input service since it is directly related to the manufacturing activity of the appellant. Secondly, the demand in the show cause notice on this account also fails as nothing has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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