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TMI Blog2019 (12) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... iled engineering and erection, commissioning and installation. The impugned services for which CENVAT credit has been availed by the appellant do not fall in the exclusion clause as provided under Rule 2(l). Further, the services availed in the present case is relating to engineering, design, erection and commissioning, installation and not related to civil construction or not related to works contract service used for laying foundation for support of capital goods. Credit allowed - appeal allowed on merits, the question of limitation not considered - decided in favor of appellant. - Central Excise Appeal No. 21236 of 2018 - Final Order No. 21205/2019 - Dated:- 10-12-2019 - MR. S.S GARG, JUDICIAL MEMBER For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) who rejected the appeal. Hence the present appeal. 3. Heard both sides and perused the records. 4.1. Learned counsel appearing for the appellant submitted that the impugned order is not sustainable as the same has been passed without properly appreciating the definition of input service as provided in Rule 2(l) of CCR. He further submitted that the impugned order is contrary to the binding judicial precedents. He further submitted that in the impugned order, CENVAT credit has been denied only on the ground that the impugned input services viz. erection, commissioning and installation services, consultancy, site supervision etc. are in connection with setting up of integrated steel plant are not eligible services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or in relation to manufacture of final products qualify as input services , unless or otherwise, they falls under the exclusion category of the definition of input service. The learned counsel referred to the exclusion clause of Rule 2(l) which is reproduced herein below:- (A) service portion in the execution of a works contract and construction services including services listed under clause (b) of section 66E of the Finance Act (hereafter referred to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions of both sides and perusal of the material on record, I find that the appellant is engaged in the manufacture of sponge iron, MS billets and other iron and steel items falling under Chapter 72 of the CETA, 1985. Appellant is already having a plant for manufacture of sponge iron but they are setting up a integrated steel plant within the same premises and for that setting up, they have availed various input services provided by M/s. Mecon Ltd. who are engaged in consultancy for detailed engineering and erection, commissioning and installation. Both the authorities have denied the CENVAT credit only on the ground that the input services pertained to setting up of plant which are excluded from the definition of input service. Now the on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioning, installation and not related to civil construction or not related to works contract service used for laying foundation for support of capital goods. Identical issue has been considered by the Tribunal in the case of Primal Glass Ltd. cited supra wherein the Tribunal in para 4 has held as under:- 4. I have heard both the sides and perused the record. I find that there is no dispute that the appellant have an existing manufacturing factory wherein many other plants and machinery and two furnace were already setup and with the said existing facility, the appellant are manufacturing excisable goods for last many years. For enhancing their production, the appellant set up a new furnace, it cannot be said that they hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us of such services with the manufacture is established. Further, I find that it has consistently been held by the Hon ble Supreme Court that the words in relation to manufacture have been used to widen and explain the scope, meaning and content of the definition and applying the same ratio, CENVAT credit of service tax paid on input services is admissible so far as input services have been used directly or in directly, in or in relation to the manufacture of final product even if the term setting up has been deleted from the inclusive portion of the definition. Similarly, in the case of Birla Corporation Ltd. vs. Commissioner: 2014 (34) STR 589, CENVAT credit on erection, commissioning and installation services have been allowed. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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