2013 (2) TMI 494 - AT - Central Excise

Denial of Cenvat Credit - On dismantling of existing structure in the factory - Input service given under rule 2(l) of the CCR, 2004 - Held that - Renovation involves dismantling of the existing structure on which a new structure can be erected - Cenvat Credit allowed in respect of dismantling of existing structure in factory - In favour of assessee

Summary

Issues:
1. Appeal against Commissioner (Appeals) order allowing Cenvat Credit on dismantling of existing structure in the factory.

Analysis:
The Appellate Tribunal, after hearing both sides, examined the Commissioner's decision to allow the appeal regarding Cenvat Credit of Rs. 5,074 on dismantling of the existing structure in the factory. The Commissioner based the decision on the definition of 'input service' under the Cenvat Credit Rules, 2004, which includes services related to renovation or repairs of a factory. The Commissioner referred to various definitions of 'renovate' from legal sources, concluding that dismantling the existing structure for renovation falls under the definition of input service. The Tribunal noted that renovation typically involves dismantling the existing structure to build a new one, supporting the Commissioner's decision. Therefore, the Tribunal found no issue with the Commissioner's order and rejected the Revenue's appeal.

In conclusion, the Appellate Tribunal upheld the Commissioner (Appeals) order allowing Cenvat Credit on the dismantling of the existing structure in the factory, as it falls under the definition of 'renovation' within the scope of 'input service' as per the Cenvat Credit Rules, 2004. The Tribunal emphasized that renovation commonly includes dismantling to facilitate the construction of a new structure, affirming the Commissioner's decision and dismissing the Revenue's appeal.