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2019 (5) TMI 1138 - AT - Service TaxCENVAT Credit - Stock Broker and Banking Other Financial Services - input services used in setting up of their office premises - the new office taken on Leave and License basis - HELD THAT - The Appellant, after taking possession of the office premises against leave and licence agreement with India Bulls Real Estate Co. Pvt. Ltd, carried out certain civil construction/repair work. Also, they have carried out renovation of the premises as advised by the architecture so as to make optimum use of the space and other necessaries like air conditioners, Fire fighting equipment etc. useful for the employees and as per their requirement. The only contention of the Revenue is that after 1.4.2011 since the expression setting up has been deleted from the definition of input service as prescribed u/R 2(l) of CENVAT Credit Rules 2004, the various services received cannot be called as input service. Some of the services undertaken by the Appellant though are in the nature of civil works, but considering with other works it is definitely relate to repair/renovation, modernization of the existing office premises and eligible to CENVAT Credit. Credit allowed - appeal allowed - decided in favor of appellant.
Issues:
1. Eligibility of CENVAT Credit on services used in setting up office premises. 2. Interpretation of definition of "input service" post-amendment. 3. Applicability of service tax on renovation and modernization services. Issue 1: Eligibility of CENVAT Credit on services used in setting up office premises: The appeal was filed against a demand to recover wrongly availed CENVAT Credit on various input services used in setting up office premises. The Appellant contended that the services received, including civil works, installation of air-conditioners, and interior decoration, were in the nature of renovation and modernization of the office premises. The Tribunal analyzed the invoices and work order, concluding that the services were related to repair/renovation and modernization of the office premises, making them eligible for CENVAT Credit. Issue 2: Interpretation of definition of "input service" post-amendment: The Tribunal referred to a previous judgment in a similar case where it was clarified that services related to modernization, renovation, or repair of a factory premises fall within the definition of "input service" even after the amendment. The Tribunal highlighted that the construction service relating to modernization, renovation, and repair continued to be within the meaning of "input service" post-amendment. Therefore, the service tax paid on such services was deemed eligible for credit. Issue 3: Applicability of service tax on renovation and modernization services: The Tribunal considered the judgments cited by the Appellant's Advocate, which indicated that services received for installation of air-conditioners, interior work, etc., fell within the scope of input service, making the service tax on such services eligible for CENVAT Credit. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief as per the law. In conclusion, the Tribunal ruled in favor of the Appellant, allowing the appeal and granting relief regarding the eligibility of CENVAT Credit on services used in the renovation and modernization of the office premises. The judgment provided a detailed analysis of the definition of "input service" post-amendment and emphasized the inclusion of services related to repair, renovation, and modernization within the ambit of eligible services for CENVAT Credit.
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