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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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The Respondent had taken land on lease on which it had constructed the factory for manufacturing metal components. Respondent accumulated the credit of service tax paid on lease rent for land as well as on erection, commissioning and installation engineer’s services. The department contended that credit of the said services cannot be availed as the words “directly or indirectly” and “in or in relation to” in the “input service” definition, should be interpreted strictly. It was also contended that the lease rental service has no nexus with manufacturing of metal components. The respondent’s contention is that it is covered under both ‘includes part’ and ‘means part’ of the definition of “input service” as defined under Rule 2(l) of CENVAT Credit Rules, 2004. The said rule specifically includes services in relation to setting up of factory. Further the amended input service definition (effective from April 01, 2011) specifically excluded the service related to construction and therefore prior to the said date, the same was eligible as the amendment was not retrospective in nature.
Held
The High Court held that service used for setting up immovable property is connected with manufacturing activity and therefore the CENVAT credit is allowed.