Commissioner Of Central Excise vs M/S. Technico Industries Ltd

[Arising out of Order-In-Appeal No. 398-SVS-GGN-2013 dated 05/8/2013 passed by Commissioner of Central Excise (Appeals) Delhi III, Gurgaon]

For approval and signature:

Honble Mr Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

Commissioner of Central Excise Appellants

Delhi III

Vs.

M/s. Technico Industries Ltd. Respondent

Appearance:

Shri R K Mishra, AR for the Appellants

Shri Victor Das, Advocate for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing /decision: 28.04.2015

FINAL ORDER NO. A/ 51573/2015-(SM)

Per Ashok Jindal :

Revenue is in appeal against the impugned order wherein the learned Commissioner (Appeals) has allowed input service credit on construction service availed by the respondent for setting up of their factory. Revenue is relying on CBEC circular No. 19./1/2008 ST dated 4.1.08 to say that such construction service has resulted in immovable property therefore, Cenvat credit cannot be allowed.

2. Heard the parties and perused the definition of input service as per Rule 2(l) of Cenvat Credit Rules, 2004 which is reproduced herein as under:

2(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 and quality control, coaching and training, computer networking, credit relating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal :

3. On going through the above said provisions, it is clear that manufacturer of goods is entitled to avail Cenvat credit on the services received for setting up of a factory. It is not disputed that construction service has been received by the respondent for setting of their factory. Therefore, the Boards Circular cannot be relied upon. In these circumstances, I hold that learned Commissioner (Appeals) has rightly allowed the Cenvat credit to the appellant for construction services which was used by the respondent for setting up of their factory. Consequently, I do not find merit in the appeal filed by the Revenue, same is dismissed.

(Dictated and pronounced in the open court )

( Ashok Jindal ) Member(Judicial)

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