2016 (10) TMI 1175 - AT - Central Excise

CENVAT credit - works contract - case of Revenue is that scope and activity carried out by the contractor was not works contract - Held that - Law is well settled that when construction work is carried out that involves both goods and services and that cannot be ruled out to be no works contract. Therefore, denial of Cenvat credit to the appellant in respect of the service tax paid for the services availed from the works contractor is unjustified - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal, stating that denial of Cenvat credit for service tax paid on works contract for construction of a factory was unjustified. The tribunal ruled that construction work involving both goods and services cannot be ruled out as not a works contract.