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TMI Blog2025 (4) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the tax demand raised for recovery of Cenvat Credit of Rs. 19,36,809/- along with applicable interest and imposed equivalent penalty and dropped the other demand raised in the show cause notice. Aggrieved by the said Order-in-Original, both the Department as well as appellant has filed appeal before the Commissioner (Appeals), Hyderabad. Commissioner (Appeals) has rejected the appeal filed by appellant and in respect of appeal filed by the Department set aside the order to the extent of dropping of demand of Rs. 4,71,885/- along with interest and penalty by way of remand. 3. Learned Counsel for the appellant stated that appellant entered a contract with M/s KMV Projects Ltd., for design & construction of 1800 KL RCC Structure wat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ojects Ltd., the same is towards the design and publication of the storage tank which qualifies as a capital goods under Rule 2(a)A of Cenvat Credit Rules, 2004. Therefore, the same could not be covered by the exclusion under Rule 2(a)A of Cenvat Credit Rules, 2004 and Cenvat credit cannot be said to be irregular. So, no requires to pay the interest and penalty also not impossible. Certificate of Chartered Accountant to support the facts had been submitted by the appellant at the time of adjudication. 5. Learned AR for the Department submitted that the input services on which the impugned credit was availed by M/s GMR Hyderabad International Airport Ltd., for construction and works contract services which are covered in the exclusion claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Input Service defined under Section 2(l) of Cenvat Credit Rules, 2004 as thus: (l) "input service" means,--- (i) services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person liable for paying service tax for the said taxable services and the said imported goods are his inputs or capital goods; or (ii) any service used by a provider of output service for providing an output service; or (ii) any service used by a manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) An insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) Such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee; 9. Service provided by M/s KMV Projects Ltd., is design and publication of storage tank which is recognised as capital goods under Rule 2(a)A of Cenvat Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nition of a particular item under a particular law needs to be seen from that particular perspective only. Thus, the assessees are not eligible for input credit on Works Contract Service supplied by M/s KMV Projects Ltd. 11. The agreement with M/s Enerpark Energy Pvt Ltd., Bangalore reveals the nature of work as "Design, Engineering, Construction, Erection, Testing and Commissioning" of 5.0 MWp Solar Power Plant. The assessee claimed that they are having two different agreements with M/s Enerpark Energy Pvt Ltd., for provision of services and supply of goods. It is claimed that services contract pertains to installation of a solar power plant. It is also claimed that when there are two separate contracts and separate consideration for prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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