2018 (10) TMI 2036 - AT - Central Excise

CENVAT Credit - credit denied on various input services on the premises that these services are not input services in term of Rule 2(l) of Cenvat Credit Rules, 2004 - credit also denied on the premises that these are not inputs used in the manufacture of final products in terms of Rule 2(k) ibid - imposition of equivalent amount of penalty. HELD THAT - Considering the fact that all the services which have been mentioned and disputed by the appellant have been availed prior to 1.4.2011 and on construction service in respect of building contractor, architect services, design services, interior decorators service and health service, the Hon ble Punjab Haryana High Court in the case of Bellsonica Auto Components India P.Ltd. 2015 (7) TMI 930 - PUNJAB HARYANA HIGH COURT held that prior to 1.4.2011 the construction service excluded from the definition of input service . Therefore, I hold that on input services in respect of building contractor service, architect service, design service and interior decorator service, the appellant has correctly availed Cenvat credit. Services availed by the appellant prior to 1.4.2011 in the course of business of manufacturing - HELD THAT - This issue has been decided by the Hon ble Bombay High Court in the case of Ultra Tech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT where it was held that 'once the service tax is borne by the ultimate consumer of the service, namely the worker, the manufacturer cannot take credit of that part of the service tax which is borne by the consumer.' - thus, the services have been disputed by the appellant here, the appellant is entitled to avail credit. Inputs, namely, plastic/bin crates, water chillier and swivel seats - HELD THAT - These inputs received by the appellant used in the manufacture of final products. Therefore, the appellant is entitled to credit on input in terms of Rule 2(k) of Cenvat Credit Rules. 2004. Appeal disposed off.

Summary

The appellant appealed against the denial of Cenvat credit on input services and inputs. The Tribunal ruled in favor of the appellant, allowing credit on input services related to construction, architect, design, and interior decorator services availed before 1.4.2011. The Tribunal also allowed credit on inputs like plastic/bin crates, water chillier, and swivel seats used in manufacturing final products. The appeal was disposed of accordingly.