2017 (5) TMI 1387

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..... the manufacture of dutiable goods - It is obvious that when the project work of renovation and modernization of the plant is undertaken, it takes some time and after gestation period, the plant comes into operation and whatever goods manufactured out of that plant is cleared on payment of duty. Therefore, the credit in respect of the services, which is related to the said renovation and moderniza .....

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..... n and renovation of plant for manufacture of POY. For such modernization and renovation, they have received certain services on which the Cenvat credit was availed. The setting up of the plant for manufacture of filament yarn was completed in February 2010. A show-cause notice was issued proposing denial of Cenvat credit on the services used for renovation and modernization of plant for manufactur .....

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..... going on. Obviously, at the time of modernization and renovation, the plant will not be in operational and it came into operation only after completion of the work. This fact is not in dispute. Therefore, the renovated plant in respect of which the credit was availed has been used by the manufacturer for dutiable final products. Therefore, the credit is rightly availed by the appellant. 2.1 He .....

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..... e reason that the input service received for the plant was used in the manufacture of dutiable goods. It is obvious that when the project work of renovation and modernization of the plant is undertaken, it takes some time and after gestation period, the plant comes into operation and whatever goods manufactured out of that plant is cleared on payment of duty. Therefore, the credit in respect of th .....

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..... have not cleared any goods under exemption during and after the renovation and modernization of plant of the appellant. With these undisputed fact, I do not see any reason why the Cenvat credit on the input services should not be allowed when the service is related to the manufacturing of dutiable goods. I therefore, set aside the impugned order and allow the appeal. 5. As per the above decis .....

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