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TMI Blog2023 (8) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... ion service of the definition of input service , it is apparent that the construction service relating to modernization, 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. It is a fact that the appellant took credit on the services used in the construction of civil structure for newly setup of Steel Melting of Continuous Castings Machine (SMS), and for provision of fabrication and erection service for the installation of the SMS plant, which is covered under the definition modernization, renovation or repair . The Tribunal has consistently held that credit on such services is available to the taxpayer, which have been qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also alleged that the facts regarding development of inadmissible Cenvat credit by the appellant came to notice of the Department only during the course of audit. Therefore, the extended period of limitation of five years for recovery of the same is invokable. Consequently show cause notice dated 10.07.2019 was issued. The jurisdictional Assistant Commissioner vide his Order-in- Original dated 10.02.2021 allowed the input service credit of ₹2,67,720/ and disallowed Cenvat credit of ₹2,10,808/ along with interest and imposed equal penalty. Being aggrieved, the appellant preferred appeal before Commissioner (Appeals), who vide the impugned order upheld the Order-in-Original, and dismissed the appeal. 3. The learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., Vs Commissioner of Central tax, Bengaluru East[2021- TIOL-158-CESTAT-Bang]; iii. Menzies Aviation Bobba(Bangalore) Pvt Ltd., Vs CCE[2020-TIOL-989-CESTAT-Bang]; iv. Samsung R D Institute India Bangalore Pvt ltd., Vs Commissioner of Central Excise Service Tax Bangalore [2020(34)GSTL.213(Tri-Bang)] and v. Ion Exchange (I) Ltd., Vs CCE, Customs and Service Tax, Surat-II-2018-TIOL-752-CESTAT-AHMD]. 3.1. The learned Counsel for the submitted that the appellant had availed credit of ₹.1,68,08/ on the bill raised by M/s S.N. Services, for the provision of fabrication and erection services for the SMS plant. He submitted that the impugned service is directly connected with the production activity of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st amendment: Prior to 1-4-2011 (l) 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 up to the place of removal, and includes services used in relation to setting up, 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 up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof; 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 .. . 6. A plain reading of the said provisions makes it clear that the service utilized in relation to modernization, renovation and repair of the factory will fall within the scope of the meaning of input service even though; construction of a building or civil structure or part thereof has been placed under exclusion clause of the said definition of input service . I note that post the amendment to the definition of the input service , a clarification issued by the Board vide Circular No. 943/4/2011-CX, dated 29-4-2011 whereunder in response to the is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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