9911796707
TMI Blog2024 (5) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... sed for repairs and renovation of the factory and as such is eligible as Cenvat credit. It is also found that the definition of input services as contained in Rule 2(l) specifically includes services used in relation to modernization, renovation or repairs of a factory. The said definition was amended w.e.f. 01.04.2011 wherein construction of the factory was excluded. As there is no exclusion in respect of the services relatable to renovation or repair, there are no reasons to hold that such services were not cenvatable. The impugned orders cannot be sustained are therefore set aside - Appeal allowed. - MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) Shri S. C. Kamra, Advocate for the Appellant Shri Santosh Kumar, Authorized Representative for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, 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 upto the place of removal; [but excludes], - [(A) service portion in the execution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the credit taken by the appellant on Civil Construction Works is not available to them. 5.1 As regards the applicability of interest, the appellant contended that they did not utilize the credit as they were having substantial amount of credit and such credit is continuing with the appellant till now, on account of that no interest liability arises against them. I find the force in the contention of the appellant and refer the Rule 14 of Cenvat Credit Rules, 2004, which says that Where the CENVAT credit has been taken wrongly but not utilized, the same shall be recovered from the manufacturer or the provider of output service, as the case may be, and the provisions of section 11A of the Excise Act or section 73 of the Finance Act, 1994 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re which is being reproduced:- Sr. No. Issue Clarification 4. Is the credit of input services used for repair or renovation of factory or office available? Credit of input services used for repair or renovation of factory or office is allowed. Services used in relation to renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, are specifically provided for in the inclusive part of the definition of input services. 6. In view of the above clarification by CBEC, I find that the Cenvat credit involved in the dispute is related to the service tax paid on services used for repairs and renovation of the factory and as such is eligible as Cenvat credit. I also find that the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
