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TMI Blog2024 (1) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the appellant undisputedly being a service provider of CICS is clearly eligible for the cenvat credit in respect of the goods in question against the output service of construction. This issue has been considered by the Jurisdiction High Court in the case of MUNDRA PORTS AND SPECIAL ECONOMIC ZONE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE CUSTOMS [ 2015 (5) TMI 663 - GUJARAT HIGH COURT] where it was held that The denial of input credit to the appellant by the respondent is set aside. It is absolutely clear that the cenvat credit on the goods namely Cement, MS Angles, Channels, TMT Bars, TMT Rods etc. for service provider of CICS cannot be denied in terms of Rule 2 (k) of Cenvat Credit Rules, 2004 prevailing at the relevant time. The impugned order set aside - appeal allowed. - HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR And HON'BLE MEMBER (TECHNICAL), MR. C.L.MAHAR Shri Hardik Modh, Advocate for the Appellant Shri Rajesh Nathan, Assistant Commissioner (AR) for the Respondent ORDER RAMESH NAIR The brief facts of the case are that the appellant are engaged in providing Commercial or Industrial Construction Service. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service, Explanation 1. The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever, Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer [but shall not include cement, angles, channels, Centrally Twisted Deform bar(CTD) or Thermo Mechanically Treated bar(TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods];] 4.1 On the plain reading of the above amended Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utput service. Explanation 1. - The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation 2. - Input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer; (l) input service means any service, - (i) 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 service 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 and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal. 7. It is not disputed that jetty w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot in dispute that the appellant is a taxable service provider on port under the category of port services. Therefore, the appellant was entitled for input credit and the decision of the Division Bench of the Andhra Pradesh High Court squarely applies to the facts of the case and answered the question on which the appeal has been admitted. 8. Mr. Y.N. Ravani, learned counsel for the Revenue has placed reliance on the decision of the Larger Bench of the Tribunal in Vandana Global Limited v. Commissioner of Central Excise, Raipur, 2010 (253) E.L.T. 440. We have carefully gone through the decision of the Larger Bench of the Tribunal. We do not find that amendment made in Cenvat Credit Rules, 2004 which come into force on 7-7-2009 was clarificatory amendment as there is nothing to suggest in the Amending Act that amendment made in Explanation 2 was clarificatory in nature. Wherever the Legislature wants to clarify the provision, it clearly mentions intention in the notification itself and seeks to clarify existing provision. Even, if the new provision is added then it will be new amendment and cannot be treated to be clarification of particular thing or goods and/or input and as s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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