2018 (7) TMI 970 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – annual maintenance of lifts installed in the building – appellant herein is engaged in providing the taxable services of accommodation in hotel for lodging purposes – whether the service for getting the lift of the premises maintained and for getting the premises painted is an input service for the appellant on which the credit has rightly been availed or not?
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Held that:- The inclusive part of the definition specifically includes the renovation or repair of the premises of provider of output services. It is an apparent and admitted fact that the appellant is providing output services of accommodation/ lodging from the said premises – The use of word repair and maintenance in the Works Contract, is not applicable to the given circumstances as the definition of Works Contract has to be read as a whole and the perusal thereof makes it clear that when the repair, maintenance, etc. is the part of a contract
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t fall in the category of the input service. Resultantly, a Show Cause Notice dated 11.03.2016 was served upon the appellant calling them upon to explain as to why the credit wrongly availed be not recovered from the appellant alongwith the interest and the penalties in addition be not imposed. The said demand has been confirmed by the original Adjudicating Authority vide the Order dated 05.07.2016 and has been confirmed vide the Order under challenge. Being aggrieved thereof, the present Appeal has been filed. 3. I have heard Shri Narendra Patil, Ld. Advocate for the appellant and Shri H Saini, Ld. DR for the Department. 4. It is submitted on behalf of the appellant that the definition of input consists of two separate parts. First part thereof is inclusive in nature and the second part thereof is exclusive in nature. The Works Contract Services have been excluded. Department has alleged the credit as being wrongly availed on the ground that the services of getting the lifts in the pr
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Commissioner (Audit) and the decision has been judicially passed. Appeal is accordingly prayed to be rejected. 6. After hearing both the parties my considered opinion is as follows: The moot question for the present adjudication is as to whether the service for getting the lift of the premises maintained and for getting the premises painted is an input service for the appellant on which the credit has rightly been availed or not. To adjudicate the same, it would be foremost necessary to know the definition of input service. 1) Rule 2(K) of Cenvat Credit Rules, 2004 input service means – (i) services provided or agreed to be provided by a person located in non taxable territory to a person located in non taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person liable for paying service tax
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ution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for – (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) – 7. Though the impugned order has in detail discussed about the definition of Works Contract and the word repair, maintenance and renovation is very much the part thereof, but as has been held by the Hon ble Supreme Court in the case Ramala Sahkari Chini Mills Ltd. vs Commissioner, Meerut 2010 (260) ELT 321 (S.C.) that the phrase and includes is not intended by legislature to impart a restricted meaning to the definition of inputs. As already mentioned above, the inclusive part of the definition specifically includes the renovati
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