By TIOL News Service

MUMBAI, JUNE 27, 2018: THE issue is regarding denial of CENVAT Credit taken of the service tax paid by the service providers in respect of repairs & maintenance undertaken at the retail outlet of the appellant.

It is contended by the lower authorities that the service tax paid is relating to construction or civil work and the impugned services of civil work has been excluded from the purview of the definition of input services as per Rule 2(l) of CCR, 2004 w.e.f. 01.04.2011.

The appellant is before the CESTAT and justifies their stand of taking the credit.

The Bench perused the work order that was issued to the service provider and which indicated that the same pertained to the factory outlets and the services requisitioned were dismantling of cement & brick work, excavation for foundation, plastering, providing dry trap/rubble stone soling etc. at the retail outlet.

Therefore, the CESTAT observed -

"…, by no stretch of imagination, it can be stated that this activity undertaken by the service provider would fall under the ambit of exclusion clauses of Rule 2(l) of Cenvat Credit Rules, 2004…"

Accordingly, the impugned order was set aside and the appeal was allowed.