9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 202 - AT - Central ExciseCENVAT credit - whether input service credit on civil construction service for construction of their factory premises is admissible to respondent under the Cenvat Credit Rules, 2004? - Held that - the issue pertaining to admissibility of input service credit on construction service for factory/manufacturing plant is already settled by the judgment of the Hon ble High Court of Punjab & Haryana in the case of CCE, Delhi-III vs. Bellsonica Auto Components India P. Ltd. 2015 (7) TMI 930 - PUNJAB & HARYANA HIGH COURT , wherein it was held that input services used in relation to setting up, modernization, renovation or repairs of a factory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal - credit allowed - appeal dismissed - decided against Revenue.
Issues:
Admissibility of input service credit on civil construction service for factory premises under Cenvat Credit Rules, 2004. Analysis: The main issue in this appeal revolves around whether input service credit on civil construction service for the construction of factory premises is admissible to the respondent under the Cenvat Credit Rules, 2004. The Ld. Commissioner (Appeals) allowed the benefit based on the judgment of the Hon’ble Bombay High Court in the case of Coca Cola India vs. CCE. The Revenue's contention is that the construction service is an input service for the output service of renting immovable property, not for providing taxable services. The Revenue also relied on a Board’s Circular in support of their argument. On the other hand, the respondent's advocate cited the judgment of the Jurisdictional High Court of Punjab & Haryana in the case of CCE, Delhi-III vs. Bellsonica Auto Components India P. Ltd. and various decisions of the Tribunal on the same issue to support their stance. The Tribunal, after hearing both sides and examining the records, noted that the issue of admissibility of input service credit on construction service for a factory or manufacturing plant has been settled by the judgment of the Hon’ble High Court of Punjab & Haryana in the case of CCE, Delhi-III vs. Bellsonica Auto Components India P. Ltd. The High Court held that the services used in setting up a factory are covered under the definition of “input service” and are admissible for credit. The Tribunal also referred to the judgment of the Division Bench of the Bombay High Court in Coca Cola India Pvt. Ltd. v. Commissioner of C. Ex., Pune-III to emphasize the different categories of input services that can be considered for credit. The Tribunal concurred with the findings of the High Court and Tribunal, rejecting the Revenue's appeal as lacking merit based on the settled legal position. In conclusion, the Tribunal dismissed the appeal filed by the Revenue, following the established legal precedents and judgments of the High Courts and Tribunals. The decision was based on the settled interpretation that services related to setting up a factory or manufacturing plant are considered input services eligible for credit under the Cenvat Credit Rules, 2004. The Tribunal's decision aligned with the jurisprudence set by the High Courts and upheld the admissibility of input service credit on construction services for factory premises.
|
