Custom, Excise & Service Tax Tribunal
M/S Pranav Vikas (India) Ltd vs Cce-Delhi-Iv on 9 December, 2013
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
West Block No. 2, R.K. Puram, New Delhi 110 066.
Date of Hearing : 9.12.2013
No. E/Stay/59104-SM/2013 and E/58515/2013-SM
(Arising out of Order-in-Appeal No.27/CE/Appl/DLH-IV/88/2012 dated 8.4.2013 passed by the Commissioner of Central Excise (Appeals), Delhi-IV)
M/s Pranav Vikas (India) Ltd. Appellants/Applicants
Vs.
CCE-Delhi-IV Respondent
Appearance None - Appeared for appellant Shri Devender Singh, A.R. - Appeared for respondent Coram: Honble Shri D.N. Panda, Judicial Member Final Order No. 58627/2013 Per D.N. Panda :
Shri Prabhat Kumar, ld. Counsel says that the building which was constructed was meant for the factory and service tax paid on the service used for such construction availed from the contractor having suffered service tax, Cenvat credit of such tax to the tune of Rs.1,46,003/- was claimed. He says that the definition of input under Rule 2(l) of Cenvat Credit Rules 2004 has been extended to service of construction contractor availed for expansion of the factory building. Therefore service tax paid on such service should not be disallowed. Similarly, he says that the balance demand of Rs.28,803/- relates to service tax paid on insurance premium paid for the insurance of the building. According to him, building being used in manufacture and the insurance being an essential necessity for the building, service tax paid on premium amount is admissible as Cenvat credit.
2. The proposition of ld. Counsel as above does not appear to be out of the ambit of the definition of input service under Rule 2(l) of Cenvat Credit Rules, 2004, in absence of any factual dispute of Revenue. This ground alone is enough to allow appeal and also to dispose the stay application. It is ordered accordingly.
(Dictated & pronounced in open Court) (D.N. Panda) Judicial Member RM 1