Cenvat Credit available on construction service for renovation, modernization upgradation of existing plant

General Motors India P Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)

In a recent landmark case, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Ahmedabad delivered a crucial verdict concerning Cenvat credit for construction services. The case in question, titled “General Motors India P Ltd Vs. C.C.E. & S.T. (CESTAT Ahmedabad),” has significant implications for businesses involved in renovation, modernization, and upgradation of existing plants.

CESTAT, Ahmedabad in M/s. General Motors India P Ltd. [Excise Appeal No. 11124 of 2015-DB dated September 13, 2023] held that, input tax paid for construction service used in relation to modernization, renovation of the existing factory is available as Cenvat credit per Rule 2(l) of Cenvat Credit Rules, 2004 (CCR).

Facts:

M/s. General Motors India P Ltd. (“the Appellant”) claimed Cenvat credit paid for services related to construction and restoration services for upgradation of the factory premises during the period from April 2008 to October 2012.

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