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TMI Blog2012 (5) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... it on the ground that the services utilized for the construction/erection and installation of Ammonia Storage Tank outside the factory premises, hence are not covered under the definition of input services as provided under CENVAT Credit Rules, 2004. The adjudicating authority in the impugned order held that the impugned services received in respect of storage tank which is immovable property hence or not capital goods, therefore, credit is not admissible. 3. The applicant, after relying upon the definition of 'input service' during the relevant period, submitted that the credit of the service tax paid on input services received even in relation to setting up, modernization, renovation or repairs of a factory are admissible. The applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... storage tank is immovable property hence no excise duty is paid, therefore, the credit is not admissible. The Revenue also submitted that though the cost of the storage tanks is added to the assessable value cleared on payment of duty, that is not the criteria for taking credit in respect of input services which are used in or in relation to the manufacture of inputs. It is also submitted that whether the credit is admissible in respect of service tax paid on the input services inside or outside depends on the nature of the services. Hence the credit is admissible in respect of service tax paid on the service for setting up, modernization, renovation or repairs of a factory and it cannot be said if something is constructed outside the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal". 6.1 From reading of the above definition, we find that the service tax paid on input services which are used in or in relation with setting up, modernization, renovation or repairs is admissible. The applicant is engaged in manufacture of excisable goods and the inputs were imported which are being stored at the port and subsequently transported to the factory for use with the manufacture of the final product. In the decision, relied upon by the applicant, the Tribunal held that credit cannot be denied in respect of service tax paid on the taxable services received even outside the factory premises if the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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