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TMI Blog2019 (7) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... Erection and Commissioning are covered under the inclusive part of the input services till they are meant for Repair, Maintenance, Renovation or Modernisation of the factory or the premises and even the office of the manufacturer. These services are not to be considered as input, if and only if, the services are used for erecting a civil structure or for erecting a support structure for the machinery. Further, Commissioner has not specified as to what fabrication and erection amounts to support of capital goods. We are of the opinion that demand cannot be confirmed on the basis of the conjunctions and surmises. Findings of Commissioner (Appeals) are, therefore, held to be unreasonable and without any reasoning and thus are hereby set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts beyond 01 April, 2011. 1.1 The facts in brief are that the appellant is engaged in manufacture of pharmaceuticals in the given premises. They had the Annual Maintenance Contracts for various work as that of Renovation, Maintenance, Repair, Fabrication, Dismantling, Commissioning, Erection, etc. On the said services availed, the appellant has claimed the cenvat credit under Rule 2(l) of the Cenvat Credit Rules, 2004. These rules stand amended w.e.f. 01.04.2011 wherein an exclusion clause has been inserted. Relying thereupon the credit has been denied by the Department. Being aggrieved, the appellant is before this Tribunal. 2. We have heard Ms. Kiran Sawle, Advocate for the Appellant and Mr. H.C. Saini, Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices availed by the appellant prior 01.04.2011 has been allowed to the appellant. The impugned 9 show cause notices cover the period beyond April 2011 to June 2017, which have been issued after the amendment in the definition of inputs having an exclusion clause thereof. At this stage, it is important to look into the definitions of Input pre and post 2011. From 01.04.2008 to 31.03.2011 Input Service means any service (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products and clearance of final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services (A) Specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act (hereinafter referred to as specified services), insofar as they are used for (a) Construction 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) Specified in sub-clauses (d), (o), (zo) and (zzzz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c enough while reporting that the services as that of Dismantling and Fabrication are not covered in the exclusion part of the definition of input services until the said dismantling is related to civil structure and part thereof. There is a specific finding after this observation that from the Annual Maintenance Contracts and the invoices it appears that the impugned services received by the party are only for Renovation and Modernisation of machineries directly used in or in relation to the manufacturing process of the party, as such, have the direct nexus to the manufacturing process and, therefore, should be covered in the inclusion clause of the definition of input services. 7. The Commissioner vide the impugned Order ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the fabrication/ dismantling amounting to civil works as was availed in the period April 2011 to May 2011, we do not find which is the subject matter of show cause notice dated 02.09.2011. We find no infirmity in the Order to that extent. The Commissioner is observed to have created a right bifurcation of the fabrication/dismantling work with respect to the civil structure/ support structure and with respect to the repair, maintenance. Hence, we hereby confirm this demand and take this observation of the Commissioner to be an additional ground for setting aside the remaining demand. The Order accordingly is partly set aside and Appeal stands party allowed. 9. As a result of entire above discussion, we hold that the cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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