Rico Auto Industries Ltd. Vs Commissioner of C. Excise-Delhi (CESTAT Chandigarh)
CESTAT Chandigarh held that construction services and other services which are necessary for the renting of the business falls in the definition of ‘input service’ as provided under Rule 2(l) of Cenvat Credit Rules, 2004.
Facts- The appellant is engaged in the manufacture of excisable goods falling under Chapter 87 of the Central Excise Tariff Act, 1985 and are availing facility of Cenvat Credit of the duty paid on inputs, input services and capital goods as envisaged under Rule 3 of Cenvat Credit Rules, 2004.
Two show cause notices were issued to the appellant alleging that during the course of audit, it was found by the Audit party that the appellant have taken Cenvat Credit of service tax paid on civil construction and maintenance services of items other than plant and machinery which are not covered under the definition of ‘input service’ under Rule 2(l) of Cenvat Credit Rules, 2004 for the purpose of availment of Cenvat Credit.
After following due process, the Ld. Commissioner vide the impugned order has confirmed the demand, hence, the present appeals.
Conclusion- The Hon’ble High Court of Punjab and Haryana in the case of Commissioner of Central Excise, Delhi-III vs. Bellsonica Auto Components India P. Ltd. cited (supra) has considered this issue and has held that the construction services and other services which are necessary for the renting of the business falls in the definition of ‘input service’ as provided under Rule 2(l) of Cenvat Credit Rules, 2004.
Since the issue is squarely covered by the decision of jurisdictional High Court of Punjab and Haryana, hence, by following the ratio of the same, we are of the considered view that the impugned order is not sustainable in law and therefore, the same are set-aside by allowing both the appeals of the appellant.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
These two appeals have been filed by the appellant against the common impugned order dated 27.03.2012 passed by the Commissioner of Central Excise, Delhi-III whereby the Ld. Commissioner has denied the cenvat credit on ‘Civil Construction and Maintenance Services’. The amount and period for which the cenvat credit has been denied is mentioned herein below:-
