Appellant entitled to input service credit for maintenance and insurance in property rentals

The appellant, engaged in renting out immovable property, was denied input service credit for service tax paid on maintenance and insurance. The Tribunal found the appellant entitled to the credit under Rule 2(l) of the Cenvat Credit Rules, 2004. However, as proper supporting documents were not filed, the matter was remanded for verification. The Tribunal allowed the appeal by remand, directing examination of the documents.

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Issues involved: Denial of input service credit for maintenance and insurance services related to immovable property.

Summary:
The appellant, engaged in renting out immovable property, was denied input service credit for service tax paid on maintenance and insurance of the property. The appellant contended that they are entitled to the credit as per Rule 2(l) of Cenvat Credit Rules, 2004. The respondent argued that the credit was taken based on unspecified documents under Rule 9 of the Rules.

After hearing both parties, the Tribunal found that the appellant, being in the business of renting out immovable property service, is indeed entitled to input service credit u/s Rule 2(l) of the Rules. However, it was noted that proper documents supporting the credit were not filed. Therefore, the matter was remanded to the adjudicating authority for verification of the documents.

The Tribunal allowed the appeal by way of remand, directing the adjudicating authority to examine the documents on which the credit was taken. The stay application was also disposed of accordingly.

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