Order Date – 11 January 2023

Parties: CSCI Steel Corporation India Pvt Ltd Vs C.C.E-Bharuch

Facts –

• The Appellant, CSCI Steel Corporation India Pvt Ltd are engaged in manufacture of steel, coils. The appellants were setting up their new plants and while setting up their new plant, the appellant availed various services.
• Input credit of various services used by the appellant was denied on the ground that the definition of input service was amended with effect from 01.04.2011 to exclude the services used for setting up of factory premises of output service provider or office relating to such factory or premises.

Issue – 

• Whether the services are valid input services within the meaning of Rule 2(l) of the Cenvat Credit Rules, 2004 during the period 2012-14?

Order –

• The Tribunal held that the impugned order does not examine the admissibility of Cenvat Credit of these services in the main part of the definition, but relies solely on the changes made in the inclusive part of definition. In terms of the decision in the case of Pepsico India Holdings (Pvt.) Ltd it is apparent that if the services provided in relation to setting up in unit would be covered under the main part of the definition. Unless specifically excluded by exclusion clause.
• It is seen that the impugned order does not examine which service would fall under which exclusion clause. The order in this regard is vague and not a speaking order. Hence the matter is remanded to the original Adjudicating Authority for fresh adjudication.