The Delhi bench of Customs, Excise and Service Tax Appellate Tribunal in the case of M/s.Navin Fluorine International Ltd versus CCE, Indore, held that CENVAT Credit on construction service allowable since the services have been availed and paid prior to 1.04.2011.
In instant case, Assessee entered into a contract with M/s. United Project Construction Ltd to do civil construction works for Pilot Plant Building. The said service provider availed service tax as the credit on such construction services. Consequently, Revenue proceeded against the appellant on the ground that construction service was specifically excluded from the eligible input service with effect from 1.4.2011 by an amendment.
The appellant received the credit on 30.04.2011 and by relying on the CBDT circular dated 29.04.2011, Revenue decided that as the provisions of service were not completed prior to 1.4.2011, the credit cannot be allowed.
The counsel for the appellant contended that the said construction activity completed prior to 1.4.2011 and the consideration for payment of tax to service provider made before this date. On the counterpart, the counsel for the Revenue argued that after 1.4.2011, the appellant is not entitled to the credit.
Technical Member B. Ravichandran, after hearing both the sides, observed that appellant took credit on 30.04.2011 whereas the amendment was carried on 1.4.2011.
Moreover, the Appellant had produced substantial evidence through invoices given by service provider on 25.03.2011 stating that payment made for such invoice by the appellant on 28.03.2011 and the certification by Architect dated 26.03.2011.
Regarding the difference in the purchase bill and said invoice dated 25.03.2011, it was clarified by the Appellant that invoice based on the running bill of civil work, certain further work and bill were not covered for credit in the present proceedings.
After analyzing the facts and circumstances of the case, the CESTAT held that the said amendment has no implication in the present case. The bench pressed the decision of Tribunal in Ismt Ltd. – 2015 (37) STR 148 (Tribunal-Mumbai) and ruled that the credit was availed on 30.04.2011 by itself cannot be the reason for denial.To Read the full text of the Order CLICK HERE