CENVAT Credit of Excise Duty allowable on any Input service used in relation to Modernisation, Renovation or repairs of factory : CESTAT [Read Order]
Input service related to renovation or repair of factory, CENVAT credit allowable.
![CENVAT Credit of Excise Duty allowable on any Input service used in relation to Modernisation, Renovation or repairs of factory : CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/12/CENVAT-Credit-CENVAT-Credit-of-Excise-Duty-Excise-Duty-Modernisation-Renovation-or-repairs-of-factory-CESTAT-TAXSCAN.jpg "CENVAT Credit of Excise Duty allowable on any Input service used in relation to Modernisation, Renovation or repairs of factory : CESTAT [Read Order]")
The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of excise duty is allowable on any input services used concerning modernization, renovation, or repairs of the factory. Godawari Power & Ispat Limited, the appellant assessee was a holder of Central Excise Registration and was engaged in the manufacture of...
The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of excise duty is allowable on any input services used concerning modernization, renovation, or repairs of the factory.
Godawari Power & Ispat Limited, the appellant assessee was a holder of Central Excise Registration and was engaged in the manufacture of various iron and steel products, such as Sponge Iron, M.S Ingots, H.B Wire, and the assessee claimed that it had been paying duty regularly and filing the returns.
The assessee appealed against the order passed by the Commissioner (Appeals) confirming the demand for excise duty of Rs. 64,04,899/- with interest and penalty.
Krishnamohan K. Menon, the counsel for the assessee contended that the exclusion clause in the definition of work contract/construction services for the construction of building or a civil structure or part thereof does not apply to the facts of the present case as it pertains to pure construction works unrelated to manufacture.
Rakesh Agarwal, the counsel for the department contended that the scope of the remand was limited to determining the duty liability after verification of the works orders and actual use of services and, therefore, the contention that the extended period of limitation could not be invoked cannot be raised.
The Bench observed that in the case of Jai Balaji Industries Ltd. vs. Commissioner of Central Excise, Customs & Service Tax, Durgapur, the court held that the expression modernisation , renovation or repairs of a factory appeared in the definition of “input service‟ both before and after 01.07.2012 and it had not been denied by the department that the Coke Oven Project of the assessee was towards modernization and renovation of their existing plant/factory.
The two-member bench comprising Dilip Gupta (President) and Anjani Kumar (Technical) quashed the denial of the CENVAT credit which related to the input service of renovation or repair of the factory.
To Read the full text of the Order CLICK HERE
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