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TMI Blog2019 (2) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... products) by the appellant. The harmonious reading of the inclusive part of the definition and the exclusion clause mentioned at Clause (a) relating to construction service of the definition of ‘input service’, it is clear that the construction service relating to modernisation, renovation and repair of the factory continued to be within the meaning of ‘input service’ and accordingly, the service tax paid on such service is eligible to credit. Undisputedly, the appellants carried out modernisation, renovation or repair work in their factory premises as is evident from the input service invoices enclosed with the respective appeal paper book; therefore, the same are eligible to credit. The Commissioner(Appeals) has definitely committed an error while just relying upon the fact that the services provided were in the nature of work contract and he has failed to appreciate the work contract is not for construction but only for repair and maintenance. The findings are therefore liable to be set aside. The impugned order denying the cenvat credit on Repair and Maintenance Service on the ground of these being work contracts which are not input services - Appeal allowed - decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of input service. Being aggrieved the appeal is before this Tribunal. 2. I have heard Ms. Sukriti Das, Ld. Advocate for the appellant who has submitted that the appellant s manufacturing plant for petroleum products runs into a area of 1910 acres. The entire area houses several divisions required for the manufacturing activity which includes even the warehousing thereof. It is further submitted that various work contracts were awarded to the contractors for maintenance and repair of various such divisions existing in the plan. The maintenance and repair is impressed upon to have been in the inclusive part of the definition of input service. It is mentioned that Commissioner(Appeals) has committed an error while disallowing this credit. Various invoices of the said contractors have been impressed upon where the nature of works is mentioned as work contract but for the purpose of civil maintenance or repair or maintenance service. It is submitted that same cannot be held excluded merely because it is a work contract service. The Order of Commissioner(Appeals) disallowing the cenvat credit is therefore prayed to be set aside. 3. While rebutting these arguments, Ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal; [but excludes], - [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or [(B) services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enance and what is called as construction and that these two are two separate services altogether. Apparently and admittedly the services provided by the contractor of the appellant to the appellant are the Repair and Maintenance Services though in the form of work contract for civil structure but for the purpose of repair and maintenance. The invoices as placed on record clearly mentions the same. Thus the services rendered is the work contract for the maintenance of already existing structure within the appellant s plant wherein is carried on the manufacturing of the petroleum products (final products) by the appellant. 6. Accordingly, I am of the opinion that the Commissioner(Appeals) has definitely committed an error while just relying upon the fact that the services provided were in the nature of work contract and he has failed to appreciate the work contract is not for construction but only for repair and maintenance. The findings are therefore liable to be set aside. I draw my support from the decision of Hon ble Apex Court in the case Ramala Sahkari Chini Mills Ltd. Vs. Commissioner, Meerut 2010 (260) E.L.T. 321 (S.C.). This decision has been relied upon by this Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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