Cenvat Credit available on construction service for renovation, modernization upgradation of existing plant

Last updated: 25 September 2023

Save Share

Quick Summary

The CESTAT, Ahmedabad has ruled that Cenvat credit is available for construction services used in the renovation, modernisation, or upgrading of an existing factory. The tribunal found that such services fall under the definition of 'input service' as per the Cenvat Credit Rules, 2004. This decision allows businesses to claim credit for taxes paid on construction services related to improving their current plant facilities.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in M/s.General Motors India P Ltd. [Excise Appeal No. 11124 of 2015-DB dated September 13, 2023] held that, input tax paid for construction service used in relation to modernization, renovation of the existing factory is available as Cenvat credit per Rule 2(l) of Cenvat Credit Rules, 2004 ("the CCR").

Citation :
Excise Appeal No. 11124 of 2015-DB dated September 13, 2023

Daily Limit Reached